40% of bitcoin traders underwater: Glassnode information

Bitcoin is off practically 55% from its November peak, and 40% of holders at the moment are underwater on their investments, in response to new knowledge from Glassnode.

That percentage is even larger when you isolate for the short-term holders who got skin in the game within the last six months when the value 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 level, monitoring 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, during which investors paid higher fees, indicating they were willing to pay a premium in order to expedite transaction instances. The overall worth of all on-chain transaction fees paid reached 3.07 bitcoin during the last week — the most important yet recorded in its dataset.

"The dominance of on-chain transaction charges related to trade deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin investors have been seeking to de-risk, promote, 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 biggest quantity 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 tendencies, in line with the report, referring to both small-scale and large-scale investors.

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

And whereas there's extra conviction amongst retail buyers — information reveals that those 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 International Advisors is asking a bottom of round $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