40% of bitcoin investors underwater: Glassnode knowledge

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

That percentage is even greater whenever you isolate for the short-term holders who bought skin in the sport within the last 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, as the world's most popular cryptocurrency plunged to the $31,000 stage, monitoring 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 noted an influx of "pressing transactions" amid this latest sell-off, during which investors paid higher fees, indicating they have been keen to pay a premium with a purpose to expedite transaction occasions. The overall value of all on-chain transaction charges paid reached 3.07 bitcoin over the last week — the largest yet recorded in its dataset.

"The dominance of on-chain transaction charges associated with alternate deposits also signaled urgency," continued the report, further supporting the case that bitcoin investors have been looking for to de-risk, promote, or add collateral to their margin positions in response to current market volatility.

In the course of the sell-off this past week, greater than $3.15 billion in worth moved into or out of exchanges, the most important quantity since the market hit its all-time excessive in November 2021.

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

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

And whereas there's more conviction among retail investors — knowledge shows that those holding less 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 World Advisors is looking a bottom of round $29,000 a coin, and the agency is now advising purchasers buy one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report