40% of bitcoin investors underwater: Glassnode data

Bitcoin is nearly 55% off its November peak and 40% of holders are now underwater for their own investments, according to new data from Glassnode.

That percentage is even higher when isolating for short-term holders who have had skin in the game for the past six months, when the price of bitcoin peaked at around $ 69,000.

In the past month alone, 15.5% of all bitcoin wallets have fallen into an unrealized loss, as the world’s most popular cryptocurrency plunged to the $ 31,000 level, following the downside in tech stocks. Bitcoin’s close correlation with Nasdaq challenges the argument that cryptocurrency serves as a hedge from inflation.

Glassnode analysts also noted an influx of “rush transactions” in the midst of this latest sale, in which investors paid higher fees, indicating they were willing to pay a premium, in order to speed up transaction times.

Most of the portfolio cohorts, “from shrimp to whales,” have softened in their accumulation trends on the chain, according to the report, referring to both small-scale and large-scale investors.

Wallets with balances above 10,000 bitcoins have been a particularly significant distribution force in the past few weeks.

And while there is more conviction among retail investors – data shows that those holding less than 1 bitcoin are the strongest accumulators – accumulation among these small-scale holders is noticeably weaker than in February and March.

Fundstrat Global Advisors is calling a minimum of around $ 29,000 per coin, and the firm now recommends clients to buy one to three months to protect long positions.