Key Takeaways:
- Bitcoin has seen a near-complete expulsion of ‘market tourists’.
- Exchange transaction dominance has dropped by 50% since 2021.
- Bitcoin rallies by 5% on the day.
LAGOS (CoinChapter.com) — Blockchain data analytics platform, Glassnode has indicated that Bitcoin is in its deepest bear market territory as the network on-chain activity has slumped to new heights following a recent market downtrend.
In detail, Glassnode, in its recent report examining the state of the Bitcoin network, disclosed that in June, the top digital asset by market capitalization registered one of the worst monthly price performances in decades.
According to the research, the Bitcoin price slumped by 37.9% in June, resulting in the mass exodus of retail traders. Notably, the massive downtrend suffered in the last 30 days was last experienced during the 2011 bear market.
As a result of the massive slump, Glassnode disclosed that Bitcoin’s on-chain activities have drastically declined. The recent downtrend has also purged the network of “market tourists.” Market tourists in this context refer to short-term consumers looking to benefit from positive price action in an upward market.
“Almost all of the marginal buyers and sellers appear to have finally capitulated and purged from the network over the last 12-months. This leaves only a baseload of HODLers with the highest resolve remaining.”
Glassnode said.
Bitcoin Address Activity Declined By 13% —Glassnode
Additionally, Glassnode research indicated that Bitcoin network address activity has declined by 13%, from about one million active addresses daily to under 870,000 in the last 30 days.
The drop in the number of active addresses implies little growth in the number of new users. Moreover, it suggests that active network entities have been scampered due to the recent price collapse.
Meanwhile, it’s worth noting that the price drop also affected the number of Bitcoin deposits and withdrawals across crypto exchanges.
Glassnode research revealed that Bitcoin exchange transaction dominance has dropped by 50% since last year. Notably, this corroborates earlier suggestions that market tourists are fleeing and a HODLer-led regime dominates the industry.
Additionally, exchange reserves continue to see large-scale net withdrawals, with aggregate balances declining to levels last recorded in July 2018. Notably, the overall balance on exchanges has declined by more than 18% in the last three months.
Crypto exchange such as Coinbase has recorded a net outflow of coins, with an aggregate reduction of 450,000 BTC over the last two years. Moreover, the decline caused Coinbase to lose its position as the exchange with the largest Bitcoin supply this week.
Bitcoin Price Rallies By 5% Today
Meanwhile, Bitcoin prices consolidated this week, recuperating from recent losses and maintaining a steady trading range of $20,000.
The leading digital asset on the day was up by around 5%, trading at $20,170.30. However, data from Coingecko indicates that despite today’s rise, the Bitcoin price is still drifting around 2017 all-time high level.
Additionally, BTC at the time of publication has a market cap of $385 billion with a 24-hour trading volume of $23.6 billion. Also, the token has a circulating supply of 19 million BTC coins and a total supply of 21 million.
