Bitcoin fell almost 55% from its peak in November and 40% of cryptocurrency owners see their investments “bleeding”, according to new data from Glassnode.
This percentage is even higher in the case of short-term investors who have entered the “game” in the last six months when the price of bitcoin has climbed to the level of $ 69,000.
In the last month alone, 15.5% of all bitcoin wallets recorded unprecedented losses, as the most popular cryptocurrency on the planet sank to $ 31,000, following the collapse of technology stocks. The close correlation of bitcoin with the Nasdaq index casts doubt on the argument that cryptocurrency operates as a hedge against inflation.
Glassnode analysts also saw an influx of “urgent trades” amid the latest sell-off, where investors paid higher commissions, indicating they were willing to pay more to speed up trading time. Trading in the cryptocurrency chain has reached 3.07 bitcoins over the past week – the highest amount recorded to date.
“The number of foreign exchange-related trading commissions signals the urgency,” said a report by Glassnode analysts, which further reinforces the assessment that bitcoin investors have sought to mitigate risk, sell or strengthen collateral. in open contracts in response to recent market volatility.
During last week’s sell-off, it traded over $ 3.15 billion, the highest amount traded since the market hit a record high in November 2021.
Most holders of bitcoin wallets have limited their presence in the chain, according to the report, a remark that concerns both small and large investors.
And the collapse of the popular cryptocurrency does not seem to be over, as Fundstrat Global Advisors “sees” the price of bitcoin fall to the level of $ 29,000. It advises its clients to buy long positions lasting one to three months in order to protect their investments.