40% of bitcoin buyers underwater: Glassnode data

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

That percentage is even larger once you isolate for the short-term holders who obtained skin in the sport in the final six months when the price 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 most popular cryptocurrency plunged to the $31,000 level, tracking tech stocks lower. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode also noted an influx of "urgent transactions" amid this newest sell-off, through which traders paid higher charges, indicating they have been willing to pay a premium so as to expedite transaction occasions. The entire value of all on-chain transaction charges paid reached 3.07 bitcoin over the last week — the biggest yet recorded in its dataset.

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

During the sell-off this previous week, more than $3.15 billion in worth moved into or out of exchanges, the biggest 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, based on the report, referring to each small-scale and large-scale traders.

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

And whereas there is more conviction amongst retail buyers — information shows that these holding lower than 1 bitcoin are the strongest accumulators — the accumulation among these smaller-scale holders is notably weaker than it was in February and March.

Fundstrat International Advisors is calling a bottom of around $29,000 a coin, and the firm is now advising purchasers purchase one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report