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, based on new information from Glassnode.

That share is even greater while you isolate for the short-term holders who acquired pores and skin in the game in the final six months when the price of bitcoin peaked at around $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 stage, tracking tech shares decrease. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode additionally noted an influx of "pressing transactions" amid this latest sell-off, through which buyers paid larger charges, indicating they have been keen to pay a premium in order to expedite transaction times. The overall worth of all on-chain transaction fees paid reached 3.07 bitcoin over the last week — the most important but recorded in its dataset.

"The dominance of on-chain transaction charges associated with change deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin traders had been seeking to de-risk, sell, or add collateral to their margin positions in response to recent market volatility.

Through the sell-off this past week, greater than $3.15 billion in value moved into or out of exchanges, the largest amount since the market hit its all-time high in November 2021.

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

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

And whereas there's more conviction among retail traders — information reveals that these holding less than 1 bitcoin are the strongest accumulators — the buildup amongst these smaller-scale holders is notably weaker than it was in February and March.

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

— CNBC's Kate Rooney contributed to this report