40% of bitcoin investors underwater: Glassnode data

Bitcoin is off almost 55% from its November peak, and 40% of holders are actually underwater on their investments, according to new knowledge from Glassnode.

That proportion is even increased if you isolate for the short-term holders who got skin within the game within the final six months when the price of bitcoin peaked at round $69,000.

In 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 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 also famous an inflow of "pressing transactions" amid this newest sell-off, through which traders paid greater fees, indicating they were keen to pay a premium as a way to expedite transaction times. The full value of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the most important yet recorded in its dataset.

"The dominance of on-chain transaction charges associated with exchange deposits additionally signaled urgency," continued the report, additional supporting the case that bitcoin investors have 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 largest amount since 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 accordance 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 vital distributive drive over the previous few weeks.

And while there's more conviction amongst retail traders — data reveals that these holding less 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 backside of round $29,000 a coin, and the firm is now advising shoppers purchase one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report