40% of bitcoin traders underwater: Glassnode data

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

That percentage is even increased once you isolate for the short-term holders who received skin within the game in the last six months when the price of bitcoin peaked at around $69,000.

Within the last month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, as the world's hottest cryptocurrency plunged to the $31,000 degree, monitoring tech shares decrease. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode additionally noted an influx of "pressing transactions" amid this latest sell-off, wherein buyers paid larger fees, indicating they had been keen to pay a premium with a purpose to expedite transaction times. The entire value of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction charges related to exchange deposits also signaled urgency," continued the report, additional supporting the case that bitcoin investors have been in search of to de-risk, sell, or add collateral to their margin positions in response to current market volatility.

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

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

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

And while there is more conviction amongst retail buyers — knowledge 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 World Advisors is asking a bottom of around $29,000 a coin, and the agency is now advising clients purchase one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report