40% of bitcoin investors underwater: Glassnode data

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

That percentage is even higher whenever you isolate for the short-term holders who got pores and skin within the recreation within the last six months when the worth of bitcoin peaked at round $69,000.

In the final month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, because the world's hottest cryptocurrency plunged to the $31,000 degree, tracking 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 famous an influx of "urgent transactions" amid this newest sell-off, during which traders paid greater fees, indicating they were willing to pay a premium in order to expedite transaction times. The entire worth of all on-chain transaction fees paid reached 3.07 bitcoin over the past week — the largest yet recorded in its dataset.

"The dominance of on-chain transaction fees related to trade deposits also signaled urgency," continued the report, additional supporting the case that bitcoin investors were looking for to de-risk, sell, or add collateral to their margin positions in response to recent market volatility.

In the course of the sell-off this previous week, greater than $3.15 billion in worth moved into or out of exchanges, the biggest amount since the market hit its all-time excessive in November 2021.

Most wallet cohorts, "from shrimp to whales," have softened in their on-chain accumulation trends, in accordance with the report, referring to both small-scale and large-scale investors.

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

And whereas there's extra conviction amongst retail traders — information exhibits that those holding lower 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 looking a bottom of around $29,000 a coin, and the agency is now advising clients purchase one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report