40% of bitcoin buyers underwater: Glassnode data

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

That proportion is even larger if you isolate for the short-term holders who bought pores and skin in the sport in 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 hottest cryptocurrency plunged to the $31,000 degree, tracking tech shares decrease. Bitcoin's shut correlation to the Nasdaq challenges the argument that the cryptocurrency capabilities as an inflation hedge.

Analysts from Glassnode also famous an inflow of "urgent transactions" amid this latest sell-off, through which buyers paid increased charges, indicating they had been keen to pay a premium as a way to expedite transaction times. The whole worth of all on-chain transaction charges paid reached 3.07 bitcoin over the last week — the most important but recorded in its dataset.

"The dominance of on-chain transaction fees related to change deposits additionally signaled urgency," continued the report, additional supporting the case that bitcoin traders have been seeking 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 most important quantity because the market hit its all-time high in November 2021.

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

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

And while there's extra conviction amongst retail traders — data reveals that these holding less 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 World Advisors is looking a bottom of around $29,000 a coin, and the firm is now advising purchasers purchase one-to-three month put protection on lengthy positions.

— CNBC's Kate Rooney contributed to this report