40% of bitcoin investors are now underwater

According to fresh data from Glassnode, bitcoin is down roughly 55% from its November high, and 40% of owners are now under in their investments.
In the previous month alone, 15.5 percent of all bitcoin wallets have experienced an unrealized loss as the country's most popular cryptocurrency plummeted to $31,000, mirroring the drop in tech stocks.
The strong link between Bitcoin and the Nasdaq calls into question the cryptocurrency's role as an inflation hedge.
According to fresh data from Glassnode, bitcoin is down roughly 55% from its November high, and 40% of owners are now underwater on their holdings.

When you exclude short-term investors who purchased bitcoin in the last six months when the price was about $69,000, the percentage rises even more.

In the last month alone, 15.5 percent of all bitcoin wallets had experienced an unrealized loss as the country's most popular cryptocurrency plummeted to $31,000, matching the decline in tech stocks. This strong link between Bitcoin and the Nasdaq brings into question the cryptocurrency's role as a hedge against inflation.

Glassnode analysts also noticed an increase of "urgent transactions" during the recent sell-off, in which investors paid greater fees, indicating that the market is still recovering.
According the survey, most wallet cohorts, "from shrimp to whales," have slowed their on-chain accumulating tendencies, referring to both small-scale and big investors.

Over the previous few weeks, wallets with balances of more than 10,000 bitcoin have been a particularly powerful distribution force.

While retail investors are much more confident — those with less than 1 bitcoin are the strongest accumulators, according to data – that accumulation among these smaller-scale holdings is significantly lower than it was in February - March.

Fundstrat Global Advisors predicts a bottom of roughly $29,000 per coin, and investors should acquire one-to-three month put protection on long positions.