40% of bitcoin traders underwater: Glassnode information

Bitcoin is off almost 55% from its November peak, and 40% of holders at the moment are underwater on their investments, according to new knowledge from Glassnode.

That share is even larger when you isolate for the short-term holders who bought pores and skin in the game in the final six months when the price of bitcoin peaked at around $69,000.

In 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 degree, monitoring tech shares 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 influx of "pressing transactions" amid this latest sell-off, wherein investors paid greater fees, indicating they had been willing to pay a premium in an effort to expedite transaction occasions. The whole value of all on-chain transaction charges paid reached 3.07 bitcoin over the last week — the most important yet recorded in its dataset.

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

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

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

Wallets with balances of more than 10,000 bitcoin have been a particularly vital distributive drive over the previous couple of weeks.

And while there is extra conviction among retail investors — data exhibits that those 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 World Advisors is asking a bottom of around $29,000 a coin, and the agency is now advising purchasers purchase one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report