40% of bitcoin investors underwater: Glassnode information

Bitcoin is off nearly 55% from its November peak, and 40% of holders are now underwater on their investments, according to new information from Glassnode.

That proportion is even greater when you isolate for the short-term holders who received pores and skin in the game within the final six months when the value 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 close correlation to the Nasdaq challenges the argument that the cryptocurrency capabilities as an inflation hedge.

Analysts from Glassnode also famous an inflow of "pressing transactions" amid this latest sell-off, in which traders paid higher charges, indicating they had been keen to pay a premium in order to expedite transaction occasions. The whole worth of all on-chain transaction fees paid reached 3.07 bitcoin over the past week — the biggest but recorded in its dataset.

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

Throughout the sell-off this previous week, more than $3.15 billion in worth moved into or out of exchanges, the most important quantity 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 very significant distributive pressure over the previous few weeks.

And whereas there is extra conviction amongst retail traders — knowledge reveals that these holding lower 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 International Advisors is looking a backside of around $29,000 a coin, and the agency is now advising purchasers purchase one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report