40% of bitcoin investors underwater: Glassnode information

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

That share is even greater when you isolate for the short-term holders who got skin in the game in the last six months when the worth 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 shares lower. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode additionally noted an inflow of "pressing transactions" amid this latest sell-off, in which investors paid greater fees, indicating they had been prepared to pay a premium with the intention to expedite transaction occasions. The full value of all on-chain transaction fees paid reached 3.07 bitcoin during the last week — the most important but recorded in its dataset.

"The dominance of on-chain transaction charges related to alternate deposits also signaled urgency," continued the report, additional supporting the case that bitcoin buyers have been searching for to de-risk, sell, or add collateral to their margin positions in response to current market volatility.

Throughout the sell-off this past week, greater than $3.15 billion in value moved into or out of exchanges, the most important amount for the reason that market hit its all-time excessive in November 2021.

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

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

And while there's more conviction among retail buyers — knowledge shows that these 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 calling a bottom of around $29,000 a coin, and the firm is now advising clients purchase one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report