Bitcoin Long-Term Holders Hold 72% Average Profit Margin as Prices Stay Above Cost Basis
Bitcoin (BITSTAMP:BTCUSD) long-term investors have maintained consistent profits for nearly four years. On-chain data indicates that the cryptocurrency is trading roughly 72% above the average cost basis of $48,600 for long-term holders, even following recent price dips. Bitcoin / U.S. dollar traded up 1.64% today at $83,110.
Long-term holders have stayed in profit continuously since January 2023. The narrowest margin between the market price and their entry price occurred in March 2023, underscoring the strong cushion these investors have maintained through various market cycles.
Market participants are monitoring potential risks tied to changes in investor cost basis. The average cost basis has experienced weekly declines of up to 0.34% since August. A larger drop could indicate growing selling pressure, while a positive shift in the cost basis would suggest long-term investors are accumulating more asset holdings.
Key points
- Bitcoin long-term investors have remained continuously profitable since January 2023.
- The average cost basis for long-term holders sits at $48,600, with prices trading about 72% above that level.
- The closest market price came to the long-term holders' average entry cost was in March 2023.
- Weekly drops in average cost basis have been capped at 0.34% since August, serving as a key risk metric.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
How long have Bitcoin long-term holders stayed in profit?
On-chain data shows that long-term Bitcoin holders have remained continuously profitable for nearly four years, since January 2023.
What is the average cost basis for long-term Bitcoin investors?
The average cost basis for long-term holders is $48,600, with current market prices trading approximately 72% above that level despite recent pullbacks.
What signals could indicate renewed Bitcoin accumulation or selling pressure?
A widening decline in the long-term holders' average cost basis could signal stronger selling pressure, while a positive shift in cost basis growth would indicate investors are accumulating again.