40% of bitcoin investors underwater: Glassnode data

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

That proportion is even larger whenever you isolate for the short-term holders who acquired pores and skin in the recreation within the last six months when the value of bitcoin peaked at around $69,000.

In the last month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, as the world's most popular cryptocurrency plunged to the $31,000 stage, tracking tech shares decrease. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode also noted an influx of "pressing transactions" amid this latest sell-off, in which traders paid increased charges, indicating they have been prepared to pay a premium to be able to expedite transaction occasions. The total value of all on-chain transaction charges paid reached 3.07 bitcoin during the last week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction charges related to exchange deposits also signaled urgency," continued the report, additional supporting the case that bitcoin traders had been seeking to de-risk, sell, or add collateral to their margin positions in response to latest market volatility.

During the sell-off this past week, more than $3.15 billion in worth moved into or out of exchanges, the largest amount because the market hit its all-time high in November 2021.

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

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

And whereas there may be more conviction amongst retail traders — knowledge shows that these holding less 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 Global Advisors is looking a backside of around $29,000 a coin, and the agency is now advising clients buy one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report