40% of bitcoin investors underwater: Glassnode data

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

That share is even greater when you isolate for the short-term holders who received skin in the sport in the final six months when the value of bitcoin peaked at around $69,000.

Within 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 stage, tracking tech stocks decrease. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode also noted an influx of "urgent transactions" amid this latest sell-off, wherein traders paid higher fees, indicating they had been willing to pay a premium to be able to expedite transaction occasions. The total worth of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the most important but recorded in its dataset.

"The dominance of on-chain transaction charges associated with trade deposits also signaled urgency," continued the report, additional supporting the case that bitcoin traders had been seeking to de-risk, promote, or add collateral to their margin positions in response to latest market volatility.

During the sell-off this past week, more than $3.15 billion in value moved into or out of exchanges, the most important amount because 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 buyers.

Wallets with balances of greater than 10,000 bitcoin have been a particularly important distributive pressure over the previous few weeks.

And while there's more conviction amongst retail buyers — knowledge reveals that these holding less 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 International Advisors is asking a bottom of around $29,000 a coin, and the firm is now advising clients buy one-to-three month put protection on lengthy positions.

— CNBC's Kate Rooney contributed to this report