40% of bitcoin investors underwater: Glassnode information

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

That share is even higher while you isolate for the short-term holders who bought skin in the recreation in the last six months when the price of bitcoin peaked at around $69,000.

Within 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, tracking tech stocks lower. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode additionally famous an influx of "pressing transactions" amid this latest sell-off, during which traders paid higher fees, indicating they have been willing to pay a premium with a view to expedite transaction occasions. The whole value of all on-chain transaction charges paid reached 3.07 bitcoin over the past week — the largest but recorded in its dataset.

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

During the sell-off this past week, greater than $3.15 billion in value moved into or out of exchanges, the most important amount for the reason that market hit its all-time high in November 2021.

Most wallet cohorts, "from shrimp to whales," have softened of their on-chain accumulation traits, based on the report, referring to each small-scale and large-scale traders.

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

And whereas there's extra conviction among retail investors — data 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 Global Advisors is asking a backside 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