That percentage is even higher when we separate short-term holders who have acquired skins in the game in the last six months when Bitcoin’s price peaked at around $ 69,000.
Last month alone, 15.5% of all Bitcoin wallets suffered unrealized losses as the world’s most popular cryptocurrency plunged to the $ 31,000 level and tracked tech stocks. The close correlation between Bitcoin and Nasdaq disagrees with the argument that cryptocurrencies act as inflation hedges.
Glassnode analysts also pointed out the influx of “urgent trading” in this latest sale, where investors paid higher fees, and showed that they were willing to pay a premium to reduce trading time. rice field. The total value of transaction fees paid on all chains reached 3.07 Bitcoin last week. This is the largest recorded in the dataset.
“The superiority of on-chain transaction fees associated with foreign exchange deposits has also shown urgency,” the report continued, with Bitcoin investors reducing, selling or collateralizing margin position risk depending on recent markets. Volatility further favored the case we were trying to add.
During last week’s sellout, more than $ 3.15 billion worth went in and out of the exchange. This is the highest amount since the market hit a record high in November 2021.
According to the report, most wallet cohorts “from shrimp to whales” refer to both small and large investors to ease the buildup trend on the chain.
Wallets with a balance of 10,000 Bitcoins or more have been a particularly important distribution force over the past few weeks.
There is more conviction among private investors (data shows that investors holding less than 1 Bitcoin are the most powerful accumulators), but among these small holders. Accumulation is significantly weaker than in February and March.
Fundstrat Global Advisors has called for a bottom of about $ 29,000 in coins, and the company is currently advising clients to buy 1-3 months of put protection in long positions.