40% of bitcoin traders underwater: Glassnode information

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

That share is even larger once you isolate for the short-term holders who got skin within the recreation in the final 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, as the world's hottest cryptocurrency plunged to the $31,000 stage, tracking 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 famous an inflow of "pressing transactions" amid this newest sell-off, in which buyers paid higher charges, indicating they were keen to pay a premium to be able to expedite transaction instances. The overall value of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction fees associated with alternate deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin investors had been in search of to de-risk, sell, or add collateral to their margin positions in response to current market volatility.

Through the sell-off this previous week, more than $3.15 billion in value moved into or out of exchanges, the biggest quantity since the market hit its all-time excessive in November 2021.

Most pockets cohorts, "from shrimp to whales," have softened of their on-chain accumulation trends, according to the report, referring to both small-scale and large-scale traders.

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

And whereas there is extra conviction among retail investors — data exhibits that those holding lower than 1 bitcoin are the strongest accumulators — the accumulation amongst these smaller-scale holders is notably weaker than it was in February and March.

Fundstrat Global Advisors is calling a backside of around $29,000 a coin, and the agency is now advising shoppers buy one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report