40% of bitcoin buyers underwater: Glassnode information

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

That proportion is even higher when you isolate for the short-term holders who received skin in the game within the last six months when the price of bitcoin peaked at round $69,000.

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

Analysts from Glassnode also noted an influx of "pressing transactions" amid this newest sell-off, during which traders paid larger fees, indicating they have been keen to pay a premium with the intention to expedite transaction times. The overall value of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction charges related to change deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin investors had been in search of to de-risk, promote, or add collateral to their margin positions in response to current 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 amount because the market hit its all-time excessive in November 2021.

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

Wallets with balances of more than 10,000 bitcoin have been a particularly vital distributive drive over the previous couple of weeks.

And whereas there's more conviction among retail buyers — knowledge reveals that these 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 International Advisors is asking a bottom of around $29,000 a coin, and the firm is now advising clients buy one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report