Once upon a time, it appeared the global financial future was bitcoin, but that assumption has proven to be dead wrong.
In fact, according to a new analysis, 40 percent of bitcoin investors are now underwater with their initial layout, which is made even worse by the fact that -- thanks to the lousiest president in the history of the country and the terrible spend, spend, spend policies of his Democrat Party -- the stock market is tanking as well.
According to a report this week by CNBC, the cryptocurrency has lost more than half its highest value since the fall:
Bitcoin is off nearly 55% from its November peak, and 40% of holders are now underwater on their investments, according to new data from Glassnode.
That percentage is even higher when you isolate for the short-term holders who got skin in the game in the last six months when the price of bitcoin peaked at around $69,000.
In the last month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, as the world’s most popular cryptocurrency plunged to the $31,000 level, tracking tech stocks lower. Bitcoin’s close correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.
Glassnode analysts have also noted that there has been a steep rise in "urgent transactions" amid the latest round of sell-offs that saw investors paying higher fees, an indication that they were okay with paying a premium just to speed up the transaction times.
CNBC stated as well that the sum value of all on-chain transaction fees went as high as 3.07 bitcoin over the past week alone, which is the largest that has been recorded in the dataset.
“The dominance of on-chain transaction fees associated with exchange deposits also signaled urgency,” the report noted, going on to support the contention that investors holding bitcoin were looking to de-risk, sell, or otherwise add some collateral to their margin positions due to the recent extreme market volatility.
During this week's sell-off, more than $3.15 billion in value moved into or out of bitcoin exchanges, which is the most since the market reached its peak in November 2021.
Most wallet cohorts, "from shrimp to whales," have been reduced in their on-chain gain trends, the report said, a reference to both small-scale and large-scale investors.
The outlet's report continued:
Wallets with balances of more than 10,000 bitcoin have been a particularly significant distributive force over the last few weeks.
And while there is more conviction among retail investors — data shows that those holding less than 1 bitcoin are the strongest accumulators — the accumulation among these smaller-scale holders is notably weaker than it was in February and March.
Fundstrat Global Advisors is calling a bottom of around $29,000 a coin, and the firm is now advising clients buy one-to-three month put protection on long positions.
Meanwhile, in the era of Bidenflation, CNBC reported separately that Coinbase is reporting first-quarter earning results that missed analysts' revenue estimates after the closing bell on Wall Street Tuesday. Shares tumbled more than 15 percent during after-hours trading, which built on a drop of 12.6 percent during standard trading hours before the results were announced.
"The stock has lost more than 70% of its value since late March, as a broader slide in tech stocks and the value of cryptocurrencies hit Coinbase particularly hard. Bitcoin, the most popular cryptocurrency, briefly dropped below the symbolic price threshold of $30,000 on Monday, and is down more than 30% this year," the second CNBC report noted.
Biden and Democrats' basket of policy initiatives that includes massive government spending at a time when there is a supply chain crisis is causing some of the worst inflation in nearly 50 years. What's more, the markets are tumbling as 401(k) retirement plans of ordinary Americans take a beating, with no end in sight.
Biden's installed presidency has been an unmitigated disaster. But the worst is yet to come.
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