40% of bitcoin buyers underwater: Glassnode knowledge

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

That percentage is even greater while you isolate for the short-term holders who got skin in the sport within the last 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 level, tracking tech shares decrease. Bitcoin's close correlation to the Nasdaq challenges the argument that the cryptocurrency capabilities as an inflation hedge.

Analysts from Glassnode also noted an influx of "pressing transactions" amid this latest sell-off, during which traders paid increased charges, indicating they were prepared to pay a premium with a purpose to expedite transaction instances. The total value of all on-chain transaction charges paid reached 3.07 bitcoin over the past week — the biggest but recorded in its dataset.

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

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

Most pockets cohorts, "from shrimp to whales," have softened of their on-chain accumulation trends, in line with 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 couple of weeks.

And whereas there may be extra conviction among retail traders — information reveals that these holding lower 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 International Advisors is looking a bottom of around $29,000 a coin, and the firm is now advising purchasers buy one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report