40% of bitcoin investors underwater: Glassnode data

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

That share is even higher once you isolate for the short-term holders who received pores and skin in the game in the final six months when the value of bitcoin peaked at around $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 stage, tracking tech stocks lower. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode additionally famous an inflow of "urgent transactions" amid this newest sell-off, in which buyers paid increased charges, indicating they had been prepared to pay a premium so as to expedite transaction times. The overall worth 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 trade deposits additionally signaled urgency," continued the report, additional supporting the case that bitcoin traders have been in search of to de-risk, sell, or add collateral to their margin positions in response to latest market volatility.

In the course of the sell-off this previous week, more than $3.15 billion in value moved into or out of exchanges, the largest amount 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 trends, in line with the report, referring to both small-scale and large-scale investors.

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

And while there may be more conviction amongst retail investors — data reveals that those holding less than 1 bitcoin are the strongest accumulators — the accumulation amongst these smaller-scale holders is notably weaker than it was in February and March.

Fundstrat World Advisors is asking a backside of round $29,000 a coin, and the firm is now advising clients purchase one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report