40% of bitcoin investors underwater: Glassnode data

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

That proportion is even greater whenever you isolate for the short-term holders who bought pores and skin in the sport in the last six months when the worth of bitcoin peaked at around $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 level, monitoring tech stocks decrease. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode also famous an inflow of "pressing transactions" amid this latest sell-off, during which buyers paid higher fees, indicating they have been willing to pay a premium with the intention to expedite transaction times. The entire worth of all on-chain transaction fees paid reached 3.07 bitcoin over the past week — the largest yet recorded in its dataset.

"The dominance of on-chain transaction fees related to exchange deposits also signaled urgency," continued the report, further supporting the case that bitcoin investors had been looking for to de-risk, promote, 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 largest quantity since the market hit its all-time high in November 2021.

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

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

And while there's more conviction amongst retail traders — information shows that those holding lower 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 World Advisors is asking a bottom of round $29,000 a coin, and the firm is now advising clients purchase one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report