40% of bitcoin buyers underwater: Glassnode data

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

That percentage is even larger if you isolate for the short-term holders who bought skin within the sport in the last six months when the value of bitcoin peaked at around $69,000.

In 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 shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode also famous an influx of "pressing transactions" amid this latest sell-off, wherein investors paid increased charges, indicating they had been keen to pay a premium in order to expedite transaction times. The whole value of all on-chain transaction fees paid reached 3.07 bitcoin over the past week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction charges associated with exchange deposits additionally 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 current market volatility.

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

Most pockets cohorts, "from shrimp to whales," have softened in their on-chain accumulation tendencies, in response to the report, referring to each small-scale and large-scale traders.

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

And whereas there's extra conviction among retail buyers — data shows 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 agency is now advising shoppers purchase one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report