Bitcoin (BTC) is in a “dire condition” when it comes to adoption — but a silver lining is already visible, new research says.
In the latest edition of its weekly newsletter, the Week On-Chain, crypto analytics firm Glassnode said that Bitcoin was going through a “great detox.”
Current BTC price action is pressuring everyone from long-term holders (LTHs) to miners, and relief is hard to come by.
Macro turmoil and resistance at $20,000 is keeping BTC/USD at levels visited only once since 2020.
With this week’s push above $20,000 accompanied by major profit-taking, warnings remain that more pain is due for the market first before a recovery takes place.
For Glassnode, sustained lower levels are causing a seismic shift in the Bitcoin investor profile, with retail and speculators — so-called short-term holders (STHs) — now pushed out.
“Network activity remains in a dire condition as network adoption levels slump to levels last seen during the COVID crisis,” it summarized.
This reset in network composition could provide a positive nuance in the face of flatlining on-chain adoption.
LTHs, as Cointelegraph reported this week, are notorious for their stubbornness during bear markets, and data shows that they are in no mood to sell.
“The HODLer class remain resolute with both mature coin USD wealth reaching ATHs, and a multitude of lifespan metrics fully resetting to historical lows, emphasizing the unwillingness to spend held coins,” Glassnode continued, referencing its latest data analysis.
Despite the increasing prevalence of LTHs as an investor majority, STHs could nonetheless produce some dramatic downside in the event of Bitcoin falling below the $17,600 macro lows seen in June this year.
Related: BTC price stays under $19K amid hopes
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