40% of bitcoin investors underwater: Glassnode information

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

That percentage is even increased if you isolate for the short-term holders who received pores and skin in the sport in the final six months when the price of bitcoin peaked at around $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, monitoring 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 famous an influx of "pressing transactions" amid this latest sell-off, by which traders paid increased fees, indicating they have been keen to pay a premium in an effort to expedite transaction times. The full value of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the biggest but recorded in its dataset.

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

During the sell-off this previous week, greater than $3.15 billion in worth moved into or out of exchanges, the most important quantity because the market hit its all-time high in November 2021.

Most wallet cohorts, "from shrimp to whales," have softened of their on-chain accumulation trends, in response to the report, referring to both small-scale and large-scale traders.

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

And while there is extra conviction among retail buyers — knowledge exhibits 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 calling a backside of round $29,000 a coin, and the firm is now advising clients purchase one-to-three month put protection on lengthy positions.

— CNBC's Kate Rooney contributed to this report