40% of bitcoin investors underwater: Glassnode knowledge

Bitcoin is off nearly 55% from its November peak, and 40% of holders are now underwater on their investments, in accordance with new data from Glassnode.

That share is even higher while you isolate for the short-term holders who got skin in the game within the last six months when the value of bitcoin peaked at around $69,000.

In the final month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, as the world's most popular cryptocurrency plunged to the $31,000 stage, tracking tech stocks lower. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode additionally noted an influx of "urgent transactions" amid this latest sell-off, wherein traders paid higher fees, indicating they had been keen to pay a premium so as to expedite transaction instances. The whole worth of all on-chain transaction fees paid reached 3.07 bitcoin during the last week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction charges associated with change deposits also signaled urgency," continued the report, further supporting the case that bitcoin traders have been looking for to de-risk, sell, or add collateral to their margin positions in response to latest market volatility.

During the sell-off this past week, greater than $3.15 billion in value moved into or out of exchanges, the most important amount because the market hit its all-time excessive in November 2021.

Most wallet cohorts, "from shrimp to whales," have softened in their on-chain accumulation traits, in keeping with the report, referring to both small-scale and large-scale investors.

Wallets with balances of greater than 10,000 bitcoin have been a particularly vital distributive drive over the previous few weeks.

And whereas there's more conviction among retail investors — information reveals that these holding less than 1 bitcoin are the strongest accumulators — the buildup amongst these smaller-scale holders is notably weaker than it was in February and March.

Fundstrat International Advisors is looking a backside of around $29,000 a coin, and the agency is now advising purchasers purchase one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report