40% of bitcoin investors underwater: Glassnode information

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

That share is even larger when you isolate for the short-term holders who got skin in the sport within the last six months when the price of bitcoin peaked at around $69,000.

In 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 stage, tracking tech stocks decrease. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode additionally famous an inflow of "urgent transactions" amid this latest sell-off, wherein buyers paid higher charges, indicating they were prepared to pay a premium in an effort to expedite transaction occasions. The full worth of all on-chain transaction fees paid reached 3.07 bitcoin over the past week — the biggest yet recorded in its dataset.

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

Throughout the sell-off this past week, more than $3.15 billion in worth moved into or out of exchanges, the largest quantity since the market hit its all-time high in November 2021.

Most pockets cohorts, "from shrimp to whales," have softened in their on-chain accumulation developments, 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 particularly significant distributive power over the previous few weeks.

And while there may be more conviction amongst retail traders — knowledge reveals that those holding less than 1 bitcoin are the strongest accumulators — the buildup amongst these smaller-scale holders is notably weaker than it was in February and March.

Fundstrat International Advisors is asking a bottom of around $29,000 a coin, and the agency is now advising clients buy one-to-three month put protection on lengthy positions.

— CNBC's Kate Rooney contributed to this report