40% of bitcoin investors underwater: Glassnode information

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

That share is even increased if you isolate for the short-term holders who bought skin in the game in the last six months when the price of bitcoin peaked at round $69,000.

Within the last month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, as the world's hottest cryptocurrency plunged to the $31,000 degree, tracking tech shares decrease. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency capabilities as an inflation hedge.

Analysts from Glassnode also noted an inflow of "pressing transactions" amid this newest sell-off, wherein investors paid greater charges, indicating they were prepared to pay a premium with the intention to expedite transaction instances. The whole worth of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the biggest but recorded in its dataset.

"The dominance of on-chain transaction fees related to alternate deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin traders have been in search of to de-risk, sell, or add collateral to their margin positions in response to recent market volatility.

During the sell-off this past week, greater than $3.15 billion in worth 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 in their on-chain accumulation trends, according to the report, referring to each small-scale and large-scale investors.

Wallets with balances of more than 10,000 bitcoin have been a very vital distributive power over the last few weeks.

And while there's more conviction amongst retail traders — data 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 International Advisors is asking a backside of around $29,000 a coin, and the agency is now advising purchasers purchase one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report