40% of bitcoin traders underwater: Glassnode data

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

That proportion is even greater while you isolate for the short-term holders who got skin in the sport in the last 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, because the world's hottest cryptocurrency plunged to the $31,000 stage, tracking tech stocks lower. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode also famous an influx of "urgent transactions" amid this newest sell-off, by which buyers paid higher fees, indicating they have been willing to pay a premium with a view to expedite transaction times. The total value of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the largest yet recorded in its dataset.

"The dominance of on-chain transaction charges related to exchange deposits also signaled urgency," continued the report, further supporting the case that bitcoin investors have been searching for to de-risk, sell, or add collateral to their margin positions in response to latest market volatility.

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

Most pockets cohorts, "from shrimp to whales," have softened of their on-chain accumulation developments, based on the report, referring to each small-scale and large-scale traders.

Wallets with balances of more than 10,000 bitcoin have been a very significant distributive drive over the last few weeks.

And while there is more conviction amongst retail traders — data exhibits that these holding lower than 1 bitcoin are the strongest accumulators — the buildup among these smaller-scale holders is notably weaker than it was in February and March.

Fundstrat World Advisors is asking a backside of round $29,000 a coin, and the firm is now advising shoppers purchase one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report