40% of bitcoin traders underwater: Glassnode data

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

That proportion is even greater when you isolate for the short-term holders who acquired pores and skin within the sport within the final 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 level, tracking tech stocks decrease. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode also noted an inflow of "urgent transactions" amid this newest sell-off, wherein traders paid larger fees, indicating they have been keen to pay a premium in order to expedite transaction instances. The full value of all on-chain transaction charges 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 also signaled urgency," continued the report, additional supporting the case that bitcoin investors have been in search of 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 previous week, more than $3.15 billion in value moved into or out of exchanges, the biggest amount because the market hit its all-time high in November 2021.

Most wallet cohorts, "from shrimp to whales," have softened of their on-chain accumulation tendencies, based on the report, referring to both small-scale and large-scale investors.

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

And while there's extra conviction among retail traders — information reveals that these holding less 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 International Advisors is asking a backside of around $29,000 a coin, and the agency is now advising clients purchase one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report