Recent on-chain data reveals intriguing dynamics within the Bitcoin ecosystem, particularly regarding the cost basis of short-term holder (STH) whales compared to their long-term holder (LTH) counterparts. The analysis indicates that STH whales have been entering the market at price levels three times higher than those of LTH whales, a trend that merits closer examination.
New Bitcoin Whales Have Cost Basis Around $91,900
In a recent post, Axel Adler Jr from CryptoQuant provided insights into the Realized Price, a vital metric that tracks the average acquisition cost across different investor groups within the Bitcoin market. This metric plays a crucial role in assessing market sentiment and the financial health of various stakeholders.
The Realized Price serves as an indicator of whether holders are experiencing net unrealized gains or losses. When it surpasses the asset’s spot price, it suggests that investors, on the whole, are facing a loss. Conversely, a metric below the current price indicates a trend of profitability among investors.
For a meaningful analysis in this context, we focus specifically on two prominent groups of BTC investors: the short-term holder whales and long-term holder whales. The STH category includes those who purchased their Bitcoin within the last 155 days, whereas those who have held their coins beyond this period are categorized as long-term holders.
Both cohorts represent significant players in the Bitcoin market, defined by their substantial holdings of over 1,000 BTC, equivalent to approximately $103.3 million at current prices.
As illustrated in the accompanying chart, the Realized Price for STH whales currently stands at $91,900. Following Bitcoin’s recent recovery rally, this price point is notably above the current spot price, indicating that this group is comfortably positioned in profit.
In contrast, veteran LTH whales have a considerably lower cost basis of just $32,200, revealing a staggering 185% spread between the two groups. This disparity highlights a growing confidence, with STH whales willing to buy Bitcoin even at elevated price levels, a behavior reflective of increased market optimism.
Employing a historical perspective, this situation stands in stark contrast to the conditions observed during the bear market of 2022, where the cost basis difference between STHs and LTHs narrowed to just 65%. This shift indicates a notable recovery in investor sentiment, drawing possible parallels to previous bullish trends.
As we look forward, the key question remains: will the demand from new whale entrants sustain its momentum in the coming weeks? A continuation of this trend could further widen the cost basis spread, reminiscent of the remarkable 437% gap observed at the peak of the 2021 bull market.
BTC Price
Amidst these developments, Bitcoin has recently reclaimed the $103,000 level, continuing its positive trajectory.
