40% of bitcoin investors underwater: Glassnode data

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

That percentage is even increased if you isolate for the short-term holders who obtained skin in the sport within the final six months when the worth of bitcoin peaked at round $69,000.

Within the final month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, because the world's most popular cryptocurrency plunged to the $31,000 level, monitoring tech stocks lower. 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 "pressing transactions" amid this latest sell-off, during which investors paid greater charges, indicating they have been keen to pay a premium with the intention to expedite transaction occasions. The overall worth of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the most important but recorded in its dataset.

"The dominance of on-chain transaction fees associated with change deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin investors have been looking for 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 value moved into or out of exchanges, the most important quantity since the market hit its all-time high in November 2021.

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

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

And whereas there's more conviction among retail buyers — data reveals 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 asking a backside of around $29,000 a coin, and the firm is now advising shoppers buy one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report