40% of bitcoin traders underwater: Glassnode information

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

That percentage is even larger when you isolate for the short-term holders who got pores and skin within the sport in the last six months when the value of bitcoin peaked at round $69,000.

Within the last 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 shut correlation to the Nasdaq challenges the argument that the cryptocurrency features as an inflation hedge.

Analysts from Glassnode also famous an influx of "urgent transactions" amid this latest sell-off, wherein traders paid higher charges, indicating they have been willing to pay a premium to be able to expedite transaction instances. The whole value 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 associated with alternate deposits also 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 current market volatility.

During the sell-off this past week, greater than $3.15 billion in value moved into or out of exchanges, the largest amount for the reason that market hit its all-time excessive in November 2021.

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

Wallets with balances of more than 10,000 bitcoin have been a very important distributive pressure over the last few weeks.

And whereas there's more conviction amongst retail traders — data shows that those 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 Global Advisors is looking a backside of round $29,000 a coin, and the firm is now advising shoppers buy one-to-three month put protection on long positions.

— CNBC's Kate Rooney contributed to this report