40% of bitcoin buyers 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 data from Glassnode.

That proportion is even larger when you isolate for the short-term holders who received pores and skin within the game within the final six months when the worth 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 most popular cryptocurrency plunged to the $31,000 degree, monitoring tech stocks lower. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode also noted an influx of "urgent transactions" amid this latest sell-off, in which buyers paid increased charges, indicating they had been willing to pay a premium so as to expedite transaction times. The total value of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the largest yet recorded in its dataset.

"The dominance of on-chain transaction charges associated with alternate deposits also signaled urgency," continued the report, additional supporting the case that bitcoin investors have been seeking to de-risk, sell, or add collateral to their margin positions in response to recent market volatility.

During the sell-off this previous week, greater than $3.15 billion in worth moved into or out of exchanges, the biggest quantity for the reason that market hit its all-time high in November 2021.

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

Wallets with balances of more than 10,000 bitcoin have been a particularly important distributive power over the last few weeks.

And whereas there may be extra conviction amongst retail traders — data reveals 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 around $29,000 a coin, and the agency is now advising clients purchase one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report