40% of bitcoin buyers underwater: Glassnode information

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

That proportion is even greater when you isolate for the short-term holders who bought skin in the recreation in the last six months when the value of bitcoin peaked at round $69,000.

Within 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, monitoring tech stocks decrease. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode also famous an inflow of "pressing transactions" amid this newest sell-off, wherein traders paid greater charges, indicating they were prepared to pay a premium in an effort to expedite transaction times. The entire value of all on-chain transaction fees paid reached 3.07 bitcoin during the last week — the most important yet recorded in its dataset.

"The dominance of on-chain transaction fees associated with trade deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin buyers have been seeking to de-risk, sell, or add collateral to their margin positions in response to latest market volatility.

Throughout the sell-off this past week, more than $3.15 billion in worth moved into or out of exchanges, the largest amount since the market hit its all-time excessive in November 2021.

Most pockets cohorts, "from shrimp to whales," have softened of their on-chain accumulation developments, based on the report, referring to both small-scale and large-scale investors.

Wallets with balances of more than 10,000 bitcoin have been a very important distributive power over the last few weeks.

And while there's extra conviction amongst retail traders — information shows that those holding less than 1 bitcoin are the strongest accumulators — the accumulation among these smaller-scale holders is notably weaker than it was in February and March.

Fundstrat International Advisors is calling a bottom of round $29,000 a coin, and the firm is now advising clients purchase one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report