40% of bitcoin buyers underwater: Glassnode data

Bitcoin is off nearly 55% from its November peak, and 40% of holders are now underwater on their investments, based on new knowledge from Glassnode.

That share is even greater once you isolate for the short-term holders who obtained pores and skin in the sport within the last six months when the worth of bitcoin peaked at around $69,000.

Within the last 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 degree, tracking 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 noted an influx of "urgent transactions" amid this latest sell-off, during which buyers paid higher charges, indicating they were prepared to pay a premium with a view to expedite transaction times. The entire value 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 related to exchange deposits additionally signaled urgency," continued the report, additional supporting the case that bitcoin investors were in search of to de-risk, sell, or add collateral to their margin positions in response to recent market volatility.

During the sell-off this past week, more than $3.15 billion in value 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 trends, according to the report, referring to each small-scale and large-scale buyers.

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

And whereas there's extra conviction amongst retail investors — data shows that these holding less 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 calling a bottom of around $29,000 a coin, and the firm is now advising clients purchase one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report