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…
