40% of bitcoin investors underwater: Glassnode data

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

That proportion is even greater while you isolate for the short-term holders who received skin within the game within 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, because the world's hottest cryptocurrency plunged to the $31,000 level, monitoring tech shares decrease. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode also noted an inflow of "urgent transactions" amid this latest sell-off, by which buyers paid larger charges, indicating they were keen to pay a premium as a way to expedite transaction times. The total value of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the largest yet recorded in its dataset.

"The dominance of on-chain transaction fees associated with exchange deposits also signaled urgency," continued the report, further supporting the case that bitcoin traders were in search of 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, greater than $3.15 billion in worth moved into or out of exchanges, the largest amount for the reason that market hit its all-time high in November 2021.

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

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

And while there may be more conviction among retail buyers — knowledge shows that these 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 World Advisors is asking a bottom of around $29,000 a coin, and the agency is now advising clients purchase one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report