The recent crypto market woes are shaking Bitcoin (BTC) tourists out of the space, according to the analytics firm Glassnode.
Glassnode notes in a new analysis that network activity has plunged to levels seen at the deepest bear market phase in 2018 and 2019, resulting in a “near-complete expulsion” of market tourists.
However, it’s not all bearish, according to the analytics firm.
“Demand for block space is low, and the growth of network users is lackluster at best. However, below the surface, the market is experiencing a number of very intriguing divergences. Despite a historically bad year-to-date, and now the worst month of price-performance since 2011, strong HODLer undertones persist.”
Glassnode notes that crypto exchanges recently recorded the largest BTC outflow on record as market participants “find renewed momentum towards self custody.” The Bitcoin appears to have been flowing to addresses with little or no history of spending, indicating they are probably not exchanges, according to the firm.
Bitcoin is trading for $20,026 at time of writing. The top-ranked crypto asset by market cap is down more than 0.5% in the past 24 hours.
Read Glassnode’s full analysis here.
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