40% of bitcoin investors underwater: Glassnode information

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

That percentage is even larger when 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.

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 stocks lower. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode also noted an influx of "urgent transactions" amid this newest sell-off, by which traders paid increased charges, indicating they have been prepared to pay a premium in order to expedite transaction instances. The entire 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 charges related to exchange deposits also signaled urgency," continued the report, further supporting the case that bitcoin investors have been in search of to de-risk, sell, or add collateral to their margin positions in response to current market volatility.

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

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

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

And whereas there may be extra conviction among retail buyers — information reveals that these holding less 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 Global Advisors is looking a backside of around $29,000 a coin, and the agency is now advising purchasers buy one-to-three month put protection on lengthy positions.

— CNBC's Kate Rooney contributed to this report