40% of bitcoin traders underwater: Glassnode data

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

That proportion is even larger whenever you isolate for the short-term holders who obtained pores and skin in the sport within 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, because the world's hottest cryptocurrency plunged to the $31,000 level, tracking tech stocks lower. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode additionally famous an influx of "urgent transactions" amid this latest sell-off, by which buyers paid higher charges, indicating they had been keen to pay a premium with a view to expedite transaction occasions. The overall value of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the largest but recorded in its dataset.

"The dominance of on-chain transaction charges related to trade deposits also signaled urgency," continued the report, further supporting the case that bitcoin buyers have been searching for to de-risk, sell, or add collateral to their margin positions in response to latest market volatility.

Throughout the sell-off this previous week, more 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 wallet cohorts, "from shrimp to whales," have softened in their on-chain accumulation traits, 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 force over the last few weeks.

And while there is more conviction among retail investors — 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 shoppers buy one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report