Bitcoin fell nearly 55% from its peak in November, and 40% of owners are now under water for their investments, according to new data from Glassnode.
That percentage is even higher when you isolate for short-term owners who got skin in the game in the last six months when the price of bitcoin peaked at around $ 69,000.
In the last month alone, 15.5% of all bitcoin wallets have fallen into unrealized losses as the world’s most popular cryptocurrency has fallen to $ 31,000, following a decline in technology stocks. The close correlation of Bitcoin with Nasdaq calls into question the argument that cryptocurrency functions as a hedge against inflation.
Analysts at Glassnode also noted an influx of “emergency transactions” amid this latest sell-off, in which investors paid higher fees, saying they were willing to pay a premium to speed up transaction time.
Most groups of wallets, “from shrimp to whales,” have softened in their accumulation trends in the chain, according to the report, and apply to both small and large investors.
Wallets with a balance of more than 10,000 bitcoins have been a particularly significant distributive force over the past few weeks.
And while there are more beliefs among small investors – data show that those with less than 1 bitcoin are the strongest accumulators – accumulation among these smaller owners is significantly weaker than it was in February and March.
Fundstrat Global Advisors is calling for a bottom of about $ 29,000 per coin, and the company is now advising clients to buy protection for one to three months in long positions.