40% of bitcoin investors underwater: Glassnode data

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

That share is even larger if you isolate for the short-term holders who acquired skin within the recreation in the last six months when the value of bitcoin peaked at round $69,000.

In the last 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, monitoring tech shares 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, in which traders paid increased fees, indicating they were willing to pay a premium as a way to expedite transaction times. The entire worth of all on-chain transaction fees paid reached 3.07 bitcoin during the last week — the biggest but recorded in its dataset.

"The dominance of on-chain transaction fees associated with exchange deposits additionally signaled urgency," continued the report, additional supporting the case that bitcoin investors have been looking for to de-risk, sell, or add collateral to their margin positions in response to recent market volatility.

Throughout the sell-off this past week, greater than $3.15 billion in value moved into or out of exchanges, the largest 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 tendencies, in line with the report, referring to each small-scale and large-scale investors.

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

And whereas there may be more conviction amongst retail buyers — data exhibits that those 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 asking a bottom of round $29,000 a coin, and the agency is now advising shoppers purchase one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report