40% of bitcoin investors underwater: Glassnode information

Bitcoin is off practically 55% from its November peak, and 40% of holders are now underwater on their investments, according to new data from Glassnode.

That percentage is even higher whenever you isolate for the short-term holders who bought skin within the recreation within the last six months when the worth of bitcoin peaked at round $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 degree, tracking tech stocks lower. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency capabilities as an inflation hedge.

Analysts from Glassnode also noted an influx of "pressing transactions" amid this newest sell-off, in which traders paid greater fees, indicating they were willing to pay a premium with a view to expedite transaction times. The full value of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the largest yet recorded in its dataset.

"The dominance of on-chain transaction fees related to change deposits also signaled urgency," continued the report, additional supporting the case that bitcoin traders had been in search of to de-risk, promote, or add collateral to their margin positions in response to recent market volatility.

In the course of the sell-off this previous week, more than $3.15 billion in value moved into or out of exchanges, the largest quantity because the market hit its all-time high in November 2021.

Most wallet cohorts, "from shrimp to whales," have softened of their on-chain accumulation trends, in keeping with the report, referring to each small-scale and large-scale buyers.

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

And whereas there's extra conviction amongst retail traders — information reveals that these holding lower 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 World Advisors is calling a bottom of round $29,000 a coin, and the firm is now advising purchasers buy one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report