40% of bitcoin investors underwater: Glassnode information

Bitcoin is off practically 55% from its November peak, and 40% of holders are now underwater on their investments, according to new information from Glassnode.

That proportion is even higher once you isolate for the short-term holders who received skin within the sport in the last six months when the value of bitcoin peaked at around $69,000.

Within the final 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 decrease. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode also noted an influx of "pressing transactions" amid this latest sell-off, by which traders paid larger fees, indicating they had been prepared to pay a premium so as to expedite transaction instances. The whole worth of all on-chain transaction fees paid reached 3.07 bitcoin over the past week — the most important yet recorded in its dataset.

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

During the sell-off this previous week, more than $3.15 billion in worth moved into or out of exchanges, the largest amount because the market hit its all-time excessive in November 2021.

Most wallet cohorts, "from shrimp to whales," have softened of their on-chain accumulation developments, in response to the report, referring to both small-scale and large-scale buyers.

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

And whereas there's more conviction among retail traders — knowledge 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 backside of around $29,000 a coin, and the agency is now advising purchasers buy one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report