Glassnode records the departure of “market tourists” from the crypto market
The recent major depreciation of the main crypto coin almost took the “market tourists” and margin traders out of the game. According to Glassnode analysts, only hodlers remain in the industry.
Experts noted that June of this year turned out to be one of the worst months for BTC in more than 10 years. In a month, the price of bitcoin lost almost 38%. Also, activity in the BTC network has fallen to the minimum levels of the “bear market” of 2018 and 2019.
“The bitcoin network has come to a point where virtually all speculators and tourists have gotten rid of the asset,” the report says.
Experts pointed out that hodlers have not stopped hoarding bitcoins, and recently the pace has increased significantly. Small owners of BTC, whose wallets hold no more than one crypto coin, purchased almost 60,500 bitcoins in a month. And it’s “the most aggressive pace in history.”
Activity in the bitcoin network has fallen significantly — if in November more than 1 million active addresses were recorded during the day, then at present this figure is at the level of 870 thousand.
At the same time, the influx of funds in the period from June 25 to July 1 in products for institutional investors reached $64 million. A significant share of the money was received by funds that profit from the fall of the first crypto coin.
CoinShares notes that $600,000 was invested in BTC, $4.9 million in ETH, and $4.4 million in multi-currency funds. More than $51 million was invested in funds that earn on the fall of Bitcoin. $140 million was invested, which means that this figure has doubled in a week.
However, the well-known cryptanalyst Tom Weiss assures that the bearish trend is not over yet. According to him, in the short term, the price of bitcoin may fall to $14,500.
“We see a powerful red candle that will close near the lows, unless, of course, there is a monstrous rally. But this is unlikely… Now everything looks in favor of the bears. There is also a bearish trend on the four-day chart. Therefore, we are holding fiat for now,” the analyst summed up.
Do you agree with the expert?
