40% of bitcoin buyers underwater: Glassnode information

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

That percentage is even increased if you isolate for the short-term holders who bought skin in the game in the last six months when the worth of bitcoin peaked at round $69,000.

In the final month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, because the world's hottest cryptocurrency plunged to the $31,000 level, monitoring tech stocks 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 inflow of "urgent transactions" amid this newest sell-off, in which investors paid higher fees, indicating they had been willing to pay a premium so as to expedite transaction instances. The whole worth of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the largest but recorded in its dataset.

"The dominance of on-chain transaction fees associated with change deposits also signaled urgency," continued the report, additional 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 biggest quantity because the market hit its all-time excessive 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 significant distributive pressure over the previous couple of weeks.

And while there may be extra conviction among retail investors — data exhibits that those holding lower 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 World Advisors is calling a bottom of round $29,000 a coin, and the firm is now advising shoppers purchase one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report