The Bitcoin network on-chain activity appears to be in a bear market, with purchasers in the United States and the European Union trying to keep up with sellers in Asia.
According to Glassnode’s latest report on the weekly activities of the Bitcoin (BTC) network, the price of the largest cryptocurrency by market cap has remained firmly within the same tight $5,000 range of $37,680 to $42,312. However, on March 22, the asset experienced a price surge that sent it to a two-week high.
According to the findings of the study, there is a significant difference in the behaviour of the ordinary Bitcoin investor based on their location. Notably, investors from in the United States and the European Union have tended to be buys, whereas Asian investors have tended to be selling. With the exception of last November, when both sides were purchasing significantly, this trend has stayed stable since March 2020.
According to Glassnode researcher ” US and EU investors have provided broad bid support over the past two years, with substantial buying between late 2020 and early 2021, while “both areas capitulated throughout May-July.” Buyers from the European Union are currently offering the most assistance.
Glassnode, on the other hand, noted that Asian markets have generally provided low buying support through Q1-Q3 of 202and are currently producing severe selling pressure.On March 22, however, Su Zhu, co-founder of crypto investment firm Three Arrows Capital, tweeted “Asia unironically max bidding BTC,” implying that the day’s short-term price increase was spearheaded by Asian traders.
Several on-chain metrics indicate that a bear market has begun. Since mid-2021, the number of new entities — or new wallets that are not affiliated with current wallets — has been gradually increasing. This is a bear market trend that occurred from January 2018 to the first half of 2020. Every day, approximately 110,000 new entities are established on the Bitcoin network.
During a weak market, new entity growth is gradual and consistent. Large surges in new entity growth occur during bullish periods, such as January 2018 and January 2021.
Long-term holders (LTH) have increased selling pressure, as reported last week, but overall LTH supply has remained steady since an equal amount of short-term holder (STH) supply has converted, and that pattern continues. The LTH supply is made up of coins that have not been moved in at least 155 days.