40% of bitcoin investors underwater: Glassnode data

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

That percentage is even greater while you isolate for the short-term holders who received skin in the game in the last six months when the price 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 hottest cryptocurrency plunged to the $31,000 degree, tracking tech shares decrease. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode additionally famous an inflow of "pressing transactions" amid this latest sell-off, during which buyers paid greater fees, indicating they have been willing to pay a premium as a way to expedite transaction instances. The total value of all on-chain transaction charges paid reached 3.07 bitcoin over the past week — the most important yet recorded in its dataset.

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

Throughout the sell-off this previous week, more than $3.15 billion in value moved into or out of exchanges, the most important quantity because the market hit its all-time excessive in November 2021.

Most wallet cohorts, "from shrimp to whales," have softened of their on-chain accumulation trends, in accordance with the report, referring to each small-scale and large-scale buyers.

Wallets with balances of greater than 10,000 bitcoin have been a particularly important distributive power over the last few weeks.

And while there's more conviction amongst retail investors — data exhibits that those holding lower than 1 bitcoin are the strongest accumulators — the buildup among these smaller-scale holders is notably weaker than it was in February and March.

Fundstrat International Advisors is asking a bottom of around $29,000 a coin, and the firm is now advising clients buy one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report