40% of bitcoin investors underwater: Glassnode data

Bitcoin is off almost 55% from its November peak, and 40% of holders are actually underwater on their investments, in response to new data from Glassnode.

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

Within 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, monitoring tech shares lower. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency capabilities as an inflation hedge.

Analysts from Glassnode additionally famous an inflow of "pressing transactions" amid this latest sell-off, through which investors paid higher fees, indicating they have been willing to pay a premium with the intention to expedite transaction times. The whole value of all on-chain transaction charges paid reached 3.07 bitcoin over the past week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction fees associated with exchange deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin traders were looking for to de-risk, sell, or add collateral to their margin positions in response to recent 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 because the market hit its all-time excessive in November 2021.

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

Wallets with balances of more than 10,000 bitcoin have been a very important distributive force over the last few weeks.

And while there may be extra conviction amongst retail investors — knowledge exhibits that those holding lower than 1 bitcoin are the strongest accumulators — the accumulation among these smaller-scale holders is notably weaker than it was in February and March.

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

— CNBC's Kate Rooney contributed to this report