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 line with new knowledge from Glassnode.

That proportion is even larger when you isolate for the short-term holders who obtained skin within the game within the last six months when the value of bitcoin peaked at round $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 level, tracking tech shares lower. 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, during which buyers paid higher fees, indicating they were keen to pay a premium to be able to expedite transaction times. The total worth of all on-chain transaction fees paid reached 3.07 bitcoin during the last week — the largest but recorded in its dataset.

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

Throughout the sell-off this past week, more than $3.15 billion in value moved into or out of exchanges, the biggest amount because the market hit its all-time excessive in November 2021.

Most wallet cohorts, "from shrimp to whales," have softened in their on-chain accumulation tendencies, in keeping with the report, referring to each small-scale and large-scale investors.

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

And while there may be extra conviction among retail investors — information reveals 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 International Advisors is calling a backside of round $29,000 a coin, and the agency is now advising clients purchase one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report