40% of bitcoin traders underwater: Glassnode data

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 proportion is even larger when you isolate for the short-term holders who bought skin within the game within the final six months when the value of bitcoin peaked at round $69,000.

Within the final 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 shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode also famous an influx of "pressing transactions" amid this newest sell-off, during which traders paid higher fees, indicating they were willing to pay a premium in an effort to expedite transaction instances. The entire worth 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 related to alternate deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin buyers were seeking to de-risk, sell, or add collateral to their margin positions in response to current market volatility.

During the sell-off this previous week, greater 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 in their on-chain accumulation traits, based on the report, referring to both small-scale and large-scale buyers.

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

And whereas there may be extra conviction amongst retail buyers — information shows 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 International Advisors is calling a bottom of around $29,000 a coin, and the agency is now advising clients buy one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report