BTC-Newswire

Bitcoin Short-Term Holder Cost Basis Rises To $25,300, What Does It Mean?

Press Releases Crypto News Bitcoinist Bitcoin Short-Term Holder Cost Basis Rises To $25,300, What Does It Mean?

On-chain data shows the Bitcoin short-term holder cost basis has now risen to $25,300; here’s what this tells us about the market.

Bitcoin Short-Term Holder Cost Basis Has Gone Up Recently

According to data from the on-chain analytics firm Glassnode, the average acquisition price of the short-term holders continues to approach the spot price. The relevant indicator here is the “realized price,” a metric derived from the “realized cap.”

The realized price is a capitalization model for Bitcoin that puts each coin’s “real” value in the circulating supply as the price at which it was last moved on the blockchain, rather than the current spot price as the normal market cap does.

The realized price is obtained when this cap is divided by the total number of coins in circulation. Since the realized cap accounted for the investors’ cost basis (the price at which they bought their coins), the realized cap signifies the value at which the average investor in the market acquired their BTC.

The realized price can also be defined explicitly for only parts of the market. Generally, BTC investors are divided into two main groups: the “short-term holders” (STHs) and the “long-term holders” (LTHs).

The STHs include all investors holding onto their coins since less than 155 days ago, while the LTHs have those holding since more than that threshold amount.

Now, here is a chart that shows the trend in the Bitcoin realized price for the entire market, as well as the versions of the metric for the STHs and LTHs, over the last few years:

The cost basis of the different segments of the market | Source: Glassnode on Twitter

As displayed in the above graph, the Bitcoin realized price (for the total market) is around $20,100 currently, meaning that the average investor bought their coins at this price.

The mark

Go to Source to See Full Article
Author: Hououin Kyouma

Did you like this?
Tip BTC Newswire with Cryptocurrency