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, based on new knowledge from Glassnode.

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

In 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 stage, monitoring 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 inflow of "pressing transactions" amid this latest sell-off, during which traders paid higher charges, indicating they were prepared to pay a premium so as to expedite transaction instances. The overall worth of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the largest yet recorded in its dataset.

"The dominance of on-chain transaction fees associated with trade deposits additionally signaled urgency," continued the report, additional supporting the case that bitcoin traders had 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, greater than $3.15 billion in value moved into or out of exchanges, the largest quantity for the reason that market hit its all-time high in November 2021.

Most wallet cohorts, "from shrimp to whales," have softened of their on-chain accumulation developments, 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 very vital distributive pressure over the previous few weeks.

And whereas there's more conviction amongst retail investors — information shows that those 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 Global Advisors is asking a backside of round $29,000 a coin, and the firm is now advising clients buy one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report