After Terra’s collapse, Celsius and Three Arrow Capital failed. This was followed by Vauld halting its transactions and Voyager going bankrupt.
Amidst such negative news hovering around the crypto space, it’s significant that the crypto winter is deepening more and more every day. While the Bitcoin investors are still sticking to their position, exchanges are losing their grip.
However, as per the Glassnode data, Bitcoin investors’ on-chain activity has declined by 13% from November’s high to July’s first week. These levels were last recorded during 2018 and 2019 when the flagship currency was trading below $10,000.
This negative vibe is slowly entering crypto exchanges as investors are opting to withdraw their currencies and store them in crypto wallets. This has resulted in exchanges losing more than 20% when seen from January this year.
The Glassnode newsletter claims that market visitors have almost entirely left the Bitcoin market, leaving HODLers as the sole holdouts.
At the moment, Bitcoin is changing hands at $20,557 with a surge of 1.79% in the last 24hrs. Currently, the demand indicator is flashing a negative indicator as most of the activity has declined on the exchanges. However, as Bitcoin’s price has reclaimed the $20,000 level, it looks like there are still trusted holders in the market.
According to the data from Glassnode, Hodlers who refuse to sell and trust their holdings are indisputable. On the contrary, the data says flat transaction activity confirms Bitcoin consolidation.
Bitcoin Price To Move Towards $28,000?
When it comes to Bitcoin prices, as per Criag Johnson, chief market analyst at Piper Sandler Company, the important range to watch out for is $18,910 and $21,557. Both these price levels were seen during mid-June and late-June respectively.
Hence, Johnson in a recent interview with Bloomberg stated that if the King currency decides to have a price closure above $26,000 or even $28,000 will see an end to its bearish trend which has been seen since April.
On the other hand, as many exchanges are seeing a drop in their operations, Coinbase Global Inc has seen a decline of 450,000 Bitcoin in the last two years. On the contrary, the Binance exchange has seen an increase of 300,000 Bitcoin in the same two years.
As per the data, the month of June witnessed investors moving their funds from exchanges to wallets which in turn saw an illiquid increase of Bitcoin supply by 223,000. Among this 223,000 supply count, the majority of holdings consist of large-scale holders who withdrew over 140,000 currencies in June.
Hence, to sum it up we can see that though Bitcoin bears are trying their best to take everything in their control, the Hodlers are the ones holding the market and giving some hope.