Bitcoin has experienced a resurgence, surpassing the $66,000 threshold after a decline towards the on-chain cost basis of short-term holder whales.
Bitcoin’s Decline Put Pressure on Short-Term Whales
An analyst highlighted in a CryptoQuant Quicktake post that BTC’s price approached the Realized Price of short-term holder whales during the recent downturn but managed to stay above that level.
The term “Realized Price” denotes an on-chain metric that tracks the cost basis, or acquisition price, of the average Bitcoin investor. When the cryptocurrency’s spot price exceeds this level, investors are generally in unrealized profits. Conversely, trading below this level indicates overall market losses.
In this context, the focus is on the Realized Price of a specific segment: short-term holder (STH) whales. STHs are investors who acquired BTC within the past 155 days, while whales are entities holding more than 1,000 BTC. Therefore, STH whales are significant investors who purchased BTC in the last five months.
The Realized Price of this group reflects the average whale purchase price over the past five months, which aligns with a trading price within that timeframe.
A decade-long chart illustrates the trend in Bitcoin’s Realized Price for STH whales:
NewsBTC
The chart indicates a rapid increase in the Realized Price of STH whales alongside Bitcoin’s sharp rally this year. As new participants enter the market, they buy at higher prices, contributing to this trend. Additionally, as STHs surpass the 155-day threshold, they transition to the long-term holder (LTH) category, further elevating the average price.
The Realized Price of LTH whales stands at \(21,500, showcasing substantial rewards for their patience. In contrast, STH whales have a Realized Price of \)60,700.
During Bitcoin’s recent downturn, the asset approached this level, historically prompting market reactions. In bull markets, such retests often lead to buying activity, potentially explaining the rebound near the $60,700 mark.
BTC Price Update
Following its recent recovery, Bitcoin has surged back towards the $66,500 level.