40% of bitcoin buyers underwater: Glassnode knowledge

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

That percentage is even greater while you isolate for the short-term holders who got skin in the sport within the final six months when the price of bitcoin peaked at round $69,000.

In the final 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, monitoring tech stocks lower. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

Analysts from Glassnode also noted an influx of "pressing transactions" amid this newest sell-off, during which investors paid higher fees, indicating they had been keen to pay a premium so as to expedite transaction times. The overall value of all on-chain transaction fees paid reached 3.07 bitcoin over the past week — the largest yet recorded in its dataset.

"The dominance of on-chain transaction charges related to exchange deposits also signaled urgency," continued the report, further supporting the case that bitcoin buyers had been looking for to de-risk, sell, 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 value moved into or out of exchanges, the largest amount since the market hit its all-time excessive in November 2021.

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

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

And whereas there is more conviction among retail investors — knowledge shows that these holding lower 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 Global Advisors is looking a backside of round $29,000 a coin, and the agency is now advising shoppers buy one-to-three month put safety on long positions.

— CNBC's Kate Rooney contributed to this report