Glassnode: Highly Encouraging Data Emerging From Latest Bitcoin Research
- Bitcoin’s Hodler Base Remains Strong and Growing
- The size of Bitcoin “exit” from “tourists” has decreased compared to the 2018 bear market
- Smaller investors (less than 1 BTC in their wallets) are buying Bitcoin at a frantic rate
June was a month that created new data for Bitcoin, according to the blockchain analytics firm, Glassnode.
The top cryptocurrency fell 37.9%, in June — its worst monthly performance since 2011.
As a result, the majority of Bitcoin’s so-called “tourists” — those who buy to get rich… in a week, not knowing its properties and how it works — have now left the space, leaving only the most dedicated holders.
Despite the ongoing difficulties in Bitcoin’s price and the fact that cryptocurrency traders are currently experiencing the worst bear market in the industry’s history, several metrics show us that the cryptocurrency market’s hodler base remains strong.
Dedicated holders are growing in number
The withdrawal from the cryptocurrency space of several Bitcoin users is a common occurrence during periods of mass selling as well as early bear markets, according to Glassnode.
However, the size of the exit has decreased compared to the 2018 bear market, indicating that “there is an increasing level of determination among the average Bitcoin participant,” Glassnode highlights.
During the most recent decline in the number of addresses with a non-zero balance, only 1% of Bitcoin addresses fully cleared their holdings, compared to 2.8% between April and May 2021 and a whopping 24% that did the same between January and March 2018.
In fact, the most dedicated Bitcoin holders continue to maintain and increase their holdings and will likely continue to do so until the market turmoil subsides and a floor is set on the BTC price.
Back to Bitcoin best practices
The motto “if it’s not your keys, it’s not your cryptocurrencies” is gaining traction again in the cryptocurrency community as traders withdraw their coins from exchanges at a frantic pace.
The collapse of the Terra ecosystem, the potential insolvency of Celsius and the collapse of Three Arrows Capital have all served as reminders that cryptocurrencies are meant to be stored in “cold wallets”.
As of March 2020 the number of bitcoin held on exchanges has dropped from 3.15 million to 2.4 million. This is a total outflow of 750,00 BTC, with 142,500 of that total occurring in the last three months.
With platforms such as Celsius stopping withdrawals and smaller exchanges starting to set limits on the amount users can withdraw, the desire to regain personal control of their cryptocurrency assets has become a major concern for users.
This can actually be seen as a positive for prices in the long term, as the likelihood of further capitulation is reduced when coins are locked in cold wallets and not readily available for sale on exchanges.
Increasingly, everyday people are investing in Bitcoin
Another encouraging development in the midst of the worst month in Bitcoin’s history is the growing interest from wallets holding less than 1 BTC, which are more likely to represent everyday people — retail investors.
These so-called “shrimp” wallets are showing great interest in buying Bitcoin at a low price, to the tune of 60,460 BTC per month, according to Glassnode. This figure is “the most aggressive rate in history.”
Originally published at https://bitnewsbot.com on July 7, 2022.
Contents distributed by Learn.Block6.tech
👉 Discord — Live Talks
👉 Twitter — Latest articles
