40% of bitcoin investors underwater: Glassnode information

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

That proportion is even higher whenever you isolate for the short-term holders who got skin in the sport in the last six months when the price of bitcoin peaked at round $69,000.

In the last month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, as the world's most popular cryptocurrency plunged to the $31,000 stage, monitoring tech stocks lower. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode additionally famous an influx of "pressing transactions" amid this newest sell-off, during which investors paid increased fees, indicating they had been keen to pay a premium with a purpose to expedite transaction instances. The total 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 related to alternate deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin buyers have been looking for to de-risk, sell, or add collateral to their margin positions in response to recent market volatility.

In the course of the sell-off this previous week, more than $3.15 billion in value moved into or out of exchanges, the most important amount for the reason that market hit its all-time excessive in November 2021.

Most pockets cohorts, "from shrimp to whales," have softened in their on-chain accumulation traits, in keeping with the report, referring to both small-scale and large-scale traders.

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

And whereas there is more conviction among retail investors — knowledge reveals that these 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 Global Advisors is calling a backside of round $29,000 a coin, and the firm is now advising clients buy one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report