40% of bitcoin investors underwater: Glassnode information

Bitcoin is off almost 55% from its November peak, and 40% of holders at the moment are underwater on their investments, in keeping with new data from Glassnode.

That share is even higher while you isolate for the short-term holders who acquired skin within the game in the last six months when the price of bitcoin peaked at around $69,000.

Within 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 degree, monitoring tech shares lower. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode additionally famous an influx of "urgent transactions" amid this latest sell-off, through which traders paid greater fees, indicating they were prepared to pay a premium to be able to expedite transaction times. The entire value of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction fees related to trade deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin buyers have been in search of to de-risk, promote, or add collateral to their margin positions in response to current market volatility.

Through the sell-off this previous week, greater than $3.15 billion in worth moved into or out of exchanges, the biggest 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, in line with the report, referring to both small-scale and large-scale traders.

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

And while there's extra conviction among retail buyers — data shows 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 International Advisors is calling a bottom of around $29,000 a coin, and the agency is now advising clients buy one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report