40% of bitcoin traders underwater: Glassnode data

Bitcoin is off almost 55% from its November peak, and 40% of holders are actually underwater on their investments, based on new knowledge from Glassnode.

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

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

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

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

Throughout the sell-off this past week, more than $3.15 billion in value moved into or out of exchanges, the largest amount since the market hit its all-time high in November 2021.

Most pockets cohorts, "from shrimp to whales," have softened of their on-chain accumulation tendencies, 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 very vital distributive force over the previous couple of weeks.

And while there is extra conviction among retail traders — knowledge shows 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 bottom 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