Bitcoin solidly above short-term holder cost basis reflecting strong investor confidence

exchange68September 12, 2024

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Quick Take

Bitcoin is currently standing firm above the short-term holder cost basis, with a price point pegged at $27,800 as it currently trades above $28,000. This cost basis refers to investors who have held Bitcoin for less than six months, emphasizing their influence on the market’s short-term trends.

Previous data points indicate that the last significant trading period below this cost basis was during the FTX exchange collapse in November. This precedent underscores the significance of this threshold in the Bitcoin market.

It is crucial for Bitcoin to maintain this support level, which has played a pivotal role in the cryptocurrency’s stability this year. Staying above this basis not only signals stronger investor confidence but also solidifies the cryptocurrency’s resilience in turbulent market conditions.

Bitcoin STH cost basis: (Source: Glassnode)

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

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