Glassnode: market tourists already capitulated, but hodlers remain unfazed

According to Glassnode’s weekly report, almost all speculative entities and market tourists have been completely purged from the Bitcoin network, leaving long-term hodlers as the last line of support.

As Bitcoin closes June with the worst price performance in history, losing 37.9% over the last 30-days, only the most diamond hands remain unshaken. The current nosedive can only be compared to the 2011 bear market when BTC prices oscillated around $10. No surprise that day and swing traders focused on making quick profits decided to cut their activity and wait out the market storm.

Since November 2021, there has been an observed tendency for a decrease in the number of active addresses. Over that time span, this number dropped from over a million to about 870k in the last week.

A chart by Glassnode showing the number of active addresses on Bitcoin network.
Image: Glassnode

At the same time, Glassnode noted the increase in both Shrimp (addresses with less than 1 BTC) and Whale (1000 to 5000 BTC) balances. Shrimps were adding to their holdings at the rate of 60.46k BTC per month, or 0.32% of the circulating supply, “the most aggressive rate in history.” Retail investors clearly see $20k as an attractive price, betting their money on Bitcoin going higher.

Glassnode concludes that Bitcoin on-chain activity is firmly in the bear territory, as the demand for the blockspace remains low and the influx of new users is practically non-existent. Market participants increasingly opt for self-custody, keeping in mind the recent wake of bankruptcies and halted withdrawals. However, strong hodler sentiment surprisingly persists.

“The Bitcoin bear is in full swing, and in its wake, the HODLers of last resort are the last ones standing,” analysts summarise.