No More 'Bitcoin Tourists' In Crypto Market, Says On-Chain Analysis Firm

Bitcoin (CRYPTO: BTC) saw one of its worst-performing months on record in June, along with a mass exodus of retail traders.

What Happened: In a recent report examining the state of the Bitcoin network, on-chain analytics firm Glassnode noted the  “near-complete expulsion of market tourists” with only long-term holders remaining resilient.

“Prices traded down 37.9% over the last 30-days, competing only with the 2011 bear market, for the crown of the worst month on record,” stated the analysts. The last time Bitcoin recorded such a massive monthly drawdown was 11 years ago when its price was under $10.

“With network activity now at levels coincident with the deepest bear phase in 2018 and 2019, it appears that a near-complete purge of market tourism has taken place."

Glassnode refers to “market tourists” in this context as short-term players looking to benefit from positive price action in an upward market. The firm noted that address activity declined 13% from 1 million active addresses a day to under 870,000 over the last month.

See Also: 'Elon Musk Is A Tourist In Crypto,' Says Celsius CEO Alex Mashinsky Who Predicts $160K BTC By Year-End

Despite a historically bad year-to-date performance, analysts found “strong HODLer undertones persist.” In this context, Glassnode describes a “HODLer” to be a BTC holder with a long-term investment horizon that is yet to sell assets.

Included in this list of entities that have retained their Bitcoin exposure is Tesla Inc (NASDAQ: TSLA). Tesla’s $1.5 billion Bitcoin investment is now worth around $820 million, but the company has not made any significant BTC sales since April 2021.

Amid the selloff, some players like MicroStrategy Incorporated (NASDAQ: MSTR) and the government of El Salvador purchased an additional $10 million and $1.5 million worth of Bitcoin respectively.

Price Action: As per data from Benzinga Pro, the crypto market rose 5.60% over the last 24 hours. Bitcoin (CRYPTO: BTC) was trading at $20.347 at press time, up 6.45% over the last day.

Photo via smolaw on Shutterstock