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, according to new knowledge from Glassnode.

That percentage is even increased whenever you isolate for the short-term holders who bought 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 level, monitoring tech stocks decrease. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode also noted an influx of "pressing transactions" amid this latest sell-off, through which investors paid greater fees, indicating they were prepared to pay a premium to be able to expedite transaction times. The overall value of all on-chain transaction charges paid reached 3.07 bitcoin over the past week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction fees related to trade deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin investors were searching for to de-risk, sell, or add collateral to their margin positions in response to current market volatility.

In the course of the sell-off this previous week, greater than $3.15 billion in value moved into or out of exchanges, the biggest quantity 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 developments, in line with the report, referring to both small-scale and large-scale investors.

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

And whereas there may be more conviction among retail investors — information exhibits 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 looking a bottom of round $29,000 a coin, and the firm is now advising shoppers buy one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report