40% of bitcoin investors underwater: Glassnode knowledge

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

That percentage is even larger if you isolate for the short-term holders who acquired skin in the sport within the last six months when the value of bitcoin peaked at around $69,000.

In 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, tracking tech shares lower. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency capabilities as an inflation hedge.

Analysts from Glassnode also noted an influx of "pressing transactions" amid this latest sell-off, through which buyers paid greater fees, indicating they had been willing to pay a premium with the intention to expedite transaction times. The entire value of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the biggest but recorded in its dataset.

"The dominance of on-chain transaction fees related to change deposits additionally signaled urgency," continued the report, additional supporting the case that bitcoin traders have been searching for to de-risk, promote, or add collateral to their margin positions in response to latest market volatility.

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

Most wallet cohorts, "from shrimp to whales," have softened in their on-chain accumulation tendencies, in response to the report, referring to each small-scale and large-scale buyers.

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

And whereas there is more conviction among retail traders — data shows 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 Global Advisors is looking a backside of around $29,000 a coin, and the agency is now advising clients purchase one-to-three month put protection on lengthy positions.

— CNBC's Kate Rooney contributed to this report