40% of bitcoin traders underwater: Glassnode information

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

That share is even higher if you isolate for the short-term holders who acquired skin within the game within the final six months when the value of bitcoin peaked at around $69,000.

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

Analysts from Glassnode additionally famous an influx of "pressing transactions" amid this newest sell-off, wherein buyers paid larger fees, indicating they were prepared to pay a premium in order to expedite transaction times. The entire worth of all on-chain transaction fees paid reached 3.07 bitcoin during the last week — the biggest yet recorded in its dataset.

"The dominance of on-chain transaction fees related to alternate deposits additionally signaled urgency," continued the report, further supporting the case that bitcoin buyers were in search of to de-risk, promote, or add collateral to their margin positions in response to recent 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 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 accordance 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 power over the previous few weeks.

And whereas there's extra conviction among retail investors — data 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 World Advisors is looking a bottom of round $29,000 a coin, and the firm is now advising purchasers purchase one-to-three month put safety on lengthy positions.

— CNBC's Kate Rooney contributed to this report