40% of bitcoin traders underwater: Glassnode knowledge

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

That percentage is even higher once you isolate for the short-term holders who acquired skin in the recreation within the final six months when the worth of bitcoin peaked at around $69,000.

Within the final month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, as 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 capabilities as an inflation hedge.

Analysts from Glassnode also noted an inflow of "urgent transactions" amid this newest sell-off, during which buyers paid greater fees, indicating they were willing to pay a premium with a purpose to expedite transaction occasions. The entire value of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the most important 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 buyers were looking for to de-risk, sell, or add collateral to their margin positions in response to latest market volatility.

Throughout the sell-off this previous week, greater than $3.15 billion in value moved into or out of exchanges, the most important amount since the market hit its all-time excessive in November 2021.

Most wallet 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 may be more conviction among retail traders — data reveals that those 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 Global Advisors is calling a bottom of round $29,000 a coin, and the firm is now advising shoppers buy one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report