40% of bitcoin traders underwater: Glassnode information

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

That proportion is even higher when you isolate for the short-term holders who received skin within the sport in the final six months when the price of bitcoin peaked at round $69,000.

In 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 level, tracking tech stocks lower. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode also famous an influx of "pressing transactions" amid this latest sell-off, in which buyers paid greater charges, indicating they had been willing 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 during the last week — the most important yet recorded in its dataset.

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

In the course of the sell-off this previous week, more than $3.15 billion in value moved into or out of exchanges, the largest quantity since the market hit its all-time high in November 2021.

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

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

And whereas there may be more conviction among retail buyers — data shows that those holding less than 1 bitcoin are the strongest accumulators — the accumulation amongst these smaller-scale holders is notably weaker than it was in February and March.

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

— CNBC's Kate Rooney contributed to this report