40% of bitcoin investors underwater: Glassnode data

Bitcoin is off practically 55% from its November peak, and 40% of holders are now underwater on their investments, according to new information from Glassnode.

That share is even larger if you isolate for the short-term holders who received skin within the sport within the final six months when the value of bitcoin peaked at round $69,000.

Within the last 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 degree, tracking tech shares decrease. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency capabilities as an inflation hedge.

Analysts from Glassnode also famous an inflow of "pressing transactions" amid this latest sell-off, during which investors paid higher fees, indicating they have been willing to pay a premium in an effort to expedite transaction occasions. The full worth of all on-chain transaction charges paid reached 3.07 bitcoin over the last week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction fees associated with alternate deposits also signaled urgency," continued the report, further supporting the case that bitcoin investors had been seeking to de-risk, sell, or add collateral to their margin positions in response to latest 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 amount for the reason that market hit its all-time high in November 2021.

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

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

And whereas there is more conviction amongst retail investors — data reveals that these 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 International Advisors is calling a backside of around $29,000 a coin, and the firm is now advising purchasers purchase one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report