40% of bitcoin traders underwater: Glassnode data

Bitcoin is off nearly 55% from its November peak, and 40% of holders at the moment are underwater on their investments, according to new information from Glassnode.

That proportion is even higher while you isolate for the short-term holders who acquired skin in the recreation within the last six months when the price of bitcoin peaked at around $69,000.

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

Analysts from Glassnode also noted an inflow of "pressing transactions" amid this newest sell-off, wherein investors paid higher charges, indicating they have been willing to pay a premium to be able to expedite transaction instances. The entire value of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the biggest but recorded in its dataset.

"The dominance of on-chain transaction charges associated with trade deposits also signaled urgency," continued the report, further supporting the case that bitcoin buyers were searching for to de-risk, promote, or add collateral to their margin positions in response to current market volatility.

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

Most pockets cohorts, "from shrimp to whales," have softened in their on-chain accumulation trends, in line with the report, referring to both small-scale and large-scale traders.

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

And while there is extra conviction among retail traders — data exhibits that these holding less than 1 bitcoin are the strongest accumulators — the buildup 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 agency is now advising purchasers buy one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report