40% of bitcoin investors underwater: Glassnode data

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

That share is even higher when you isolate for the short-term holders who received pores and skin in the recreation within the last 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 hottest cryptocurrency plunged to the $31,000 degree, monitoring tech shares decrease. 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 "urgent transactions" amid this latest sell-off, through which investors paid higher fees, indicating they have been prepared to pay a premium with a view to expedite transaction instances. The entire value of all on-chain transaction fees paid reached 3.07 bitcoin during the last week — the biggest but recorded in its dataset.

"The dominance of on-chain transaction fees associated with exchange deposits additionally signaled urgency," continued the report, additional supporting the case that bitcoin traders have been seeking to de-risk, sell, or add collateral to their margin positions in response to current market volatility.

In the course of the sell-off this past week, greater than $3.15 billion in worth moved into or out of exchanges, the most important quantity because the market hit its all-time high in November 2021.

Most wallet 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 buyers.

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

And whereas there's more conviction among retail traders — data exhibits 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 agency is now advising clients purchase one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report