<![CDATA[According to new research, 40% of Bitcoin investors are currently in the red]]> https://usagag.com/2022/05/10/according-to-new-research-40-of-bitcoin-investors-are-currently-in-the-red/ Tue, 10 May 2022 04:17:00 +0000 hourly 1 https://usagag.com According to new research, 40% of Bitcoin investors are currently in the red According to fresh statistics from Glassnode, bitcoin is down roughly 55% from its November high, and 40% of investors are now underwater on their investments.

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

In the previous month alone, 15.5 percent of all bitcoin wallets have seen an unrealized loss as the world's most popular cryptocurrency plummeted to $31,000, matching the decline in tech stocks. The strong link between Bitcoin and the Nasdaq calls into question the cryptocurrency's role as an inflation hedge.

During this last sell-off, Glassnode analysts saw an inflow of "urgent transactions," in which investors paid higher fees, indicating that they were ready to pay a premium for faster transaction times. Over the recent week, the total value of all on-chain transaction fees paid hit 3.07 bitcoin, the highest amount ever recorded in its database.

"The preponderance of on-chain transaction costs connected with exchange deposits also implied urgency," the paper stated, bolstering the idea that bitcoin investors were looking to de-risk, sell, or increase collateral to their margin positions as a result of recent market turbulence.

More than $3.15 billion in value moved into or out of exchanges during the sell-off this week, the most since the market set its all-time high in November 2021.

According to the survey, most wallet cohorts, "from shrimp to whales," have slowed their on-chain accumulation tendencies, referring to both small-scale and large-scale 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 more confident — those with less than 1 bitcoin are the best accumulators, according to statistics – the accumulation among these smaller-scale holdings is significantly lower than it was in February and 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 holdings.

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