40% of bitcoin investors underwater: Glassnode data

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

That percentage is even increased while you isolate for the short-term holders who bought pores and skin within the recreation in the final six months when the price of bitcoin peaked at around $69,000.

In 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 degree, tracking tech shares decrease. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode additionally noted an influx of "pressing transactions" amid this latest sell-off, by which traders paid larger charges, indicating they were willing to pay a premium so as to expedite transaction occasions. The full worth of all on-chain transaction charges paid reached 3.07 bitcoin over the last week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction charges related to change deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin buyers were in search of to de-risk, sell, 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 worth moved into or out of exchanges, the largest amount 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 traits, in response to the report, referring to both small-scale and large-scale buyers.

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

And while there's extra conviction among retail investors — information shows that these holding less 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 bottom of around $29,000 a coin, and the agency is now advising clients purchase one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report