40% of bitcoin investors underwater: Glassnode information

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

That proportion is even increased once you isolate for the short-term holders who bought skin in the recreation in 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, as the world's hottest cryptocurrency plunged to the $31,000 degree, tracking tech stocks lower. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency capabilities as an inflation hedge.

Analysts from Glassnode also famous an influx of "urgent transactions" amid this latest sell-off, wherein buyers paid greater charges, indicating they had been prepared to pay a premium as a way to expedite transaction occasions. The whole value of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the largest but recorded in its dataset.

"The dominance of on-chain transaction fees related to exchange deposits also signaled urgency," continued the report, further supporting the case that bitcoin traders have been seeking to de-risk, promote, or add collateral to their margin positions in response to latest market volatility.

Through the sell-off this past week, more than $3.15 billion in worth moved into or out of exchanges, the biggest quantity 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 investors.

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

And whereas there is more conviction among retail buyers — knowledge shows that those holding less 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 Global Advisors is calling a bottom of round $29,000 a coin, and the firm is now advising clients buy one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report