According to new data from Glassnode, bitcoin has nearly 55% of its peak in November, and 40% of its owners are already under water on their investments.
This percentage is even higher when you isolate for short-term holders who have received skin in the game in the last six months, when the price of bitcoin peaked at about $ 69,000.
In the last month alone, 15.5% of all bitcoin portfolios have fallen into unrealized losses as the world’s most popular cryptocurrency fell to $ 31,000, following lower technology stocks. Bitcoin’s close relationship with Nasdaq challenges the argument that cryptocurrency functions as a hedge of inflation.
Analysts at Glassnode also noted an influx of “emergency transactions” amid this latest sell-off, in which investors paid higher fees, indicating that they are willing to pay a premium to speed up transaction time. The total value of all transaction fees paid in the chain reached 3.07 bitcoins in the last week – the largest ever recorded in its dataset.
“The dominance of transaction fees in the deposit-related chain also signals urgency,” the report continued, further supporting the view that bitcoin investors are seeking to eliminate risk, sell or add collateral to their margin positions in response to the recent market. volatility.
During last week’s sell-off, more than $ 3.15 billion moved to or off the stock market, the largest amount since the market reached its highest level in November 2021.
Most cohorts in the portfolio, “shrimp to whale”, have eased their tendencies to accumulate in the chain, according to the report, citing both small and large investors.
Wallets with a balance of more than 10,000 bitcoins have been a particularly important distributive force in the last few weeks.
And while there is more confidence among retail investors – data show that those who hold less than 1 bitcoin are the strongest accumulators – the accumulation among these smaller holders is significantly lower than in February and March
Fundstrat Global Advisors has announced a low of about $ 29,000 per coin and the company is now advising customers to buy protection for one to three months in long positions.
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