40% of bitcoin investors underwater: Glassnode data

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

That percentage is even increased if you isolate for the short-term holders who acquired pores and skin within the recreation in the final 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, as the world's hottest cryptocurrency plunged to the $31,000 degree, monitoring tech shares lower. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode additionally famous an inflow of "pressing transactions" amid this latest sell-off, through which investors paid increased charges, indicating they had been keen to pay a premium so as to expedite transaction times. The full worth of all on-chain transaction fees paid reached 3.07 bitcoin over the past week — the largest yet recorded in its dataset.

"The dominance of on-chain transaction charges associated with change deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin traders had been searching for to de-risk, sell, or add collateral to their margin positions in response to current market volatility.

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

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

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

And whereas there is more conviction amongst retail traders — knowledge reveals that those 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 asking a backside of round $29,000 a coin, and the firm is now advising purchasers purchase one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report