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 response to new knowledge from Glassnode.

That percentage is even greater whenever you isolate for the short-term holders who received skin within the recreation in the last six months when the value of bitcoin peaked at around $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 stage, tracking tech shares decrease. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode additionally famous an influx of "pressing transactions" amid this latest sell-off, through which buyers paid greater fees, indicating they had been willing to pay a premium as a way to expedite transaction instances. The full worth 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 charges associated with trade deposits also signaled urgency," continued the report, additional supporting the case that bitcoin traders have been in search of 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, more than $3.15 billion in worth moved into or out of exchanges, the most important quantity for the reason that market hit its all-time high in November 2021.

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

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

And whereas there's extra conviction among retail traders — data shows that those holding less than 1 bitcoin are the strongest accumulators — the buildup 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 shoppers buy one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report