Technology

They estimate that 40% of investors who bet on Bitcoin lost due to the collapse of the price of the cryptocurrency

Bitcoin has been posting heavy losses, like the rest of the financial assets.
Bitcoin has been posting heavy losses, like the rest of the financial assets.

The Bitcoin fails to pick up, with a loss of 5% this Tuesday, to return to operate in the $31,000. The most widely accepted virtual currency is down nearly 55% from its November 8 price peak, and according to new data from glass nodecited by CNBCthe 40% of Bitcoin holders are now in negative return on this investment.

That percentage is even higher when you isolate the short-term holders who got into the game in the last six months when the price of Bitcoin peaked around $69,000.

Just in the last month, 15.5% of all Bitcoin wallets fell into an unrealized loss, as the world’s most popular cryptocurrency crashed to the $31,000 level, tracking tech stocks lower. The stretch Bitcoin correlation with the Nasdaq challenges the argument that cryptocurrency works as a hedge against inflation.

Glassnode analysts also noted a influx of “urgent transactions” in the midst of this latest liquidation, in which investors paid higher fees, indicating that they were willing to pay a premium to speed up transaction times. The total value of all paid on-chain transaction fees reached 3.07 Bitcoin over the past week, the highest ever recorded in their dataset.

“The dominance of on-chain transaction fees associated with exchange deposits also signaled the urgency,” continued the report cited by CNBCfurther supporting the case that Bitcoin investors were looking to reduce risk, sell or add collateral to their positions margin in response to recent market volatility.

Bitcoin is almost 55% below its November peak, and 40% of holders are now in the losing zone, according to new data from Glassnode.

During the settlement last week, over $3.15 billion in equivalent value entered or exited exchanges, the most since the market hit its all-time high in November 2021.

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

In the last month alone, 15.5% of all Bitcoin wallets fell into a loss as the cryptocurrency crashed to the $31,000 level

Wallets with balances of more than 10,000 Bitcoin have been a particularly significant distributive force in recent weeks.

And while there is more conviction among retail investors, as data shows those holding less than 1 Bitcoin are the strongest accumulators, accumulation among these smaller-scale holders is notably weaker than it was in February and March.

Bitcoin’s close correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.

While, Fundstrat Global Advisors is calling for a fund of around $29,000 per coin, and the firm now advises clients to buy one to three months protection on long positions.

It also transpired that El Salvador added 500 Bitcoin to its reservesafter the fall of 11% so far this week, which has led to positioning the indicator of Bitcoin Fear and Greed Index in ‘extreme fear’when the price touched USD 30,300, a floor since last July.

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