Bitcoin Purchases on Exchanges Since 2017 Now Yielding Average Profits, Reveals On-Chain Data
Summary:
Bitcoin purchases made on exchanges yearly since 2017 are now profiting on average. According to on-chain analytics company Glassnode, $34,700 is the golden benchmark for an investment to turn profitable. Anyone who withdrew bitcoins from major exchanges since 2017 is now profitable in dollar terms. CryptoSlate's analyst James Van Straten recently revealed that short-term holder's coins, which have moved in the past 155 days, are now at a higher acquisition cost than ever before.
Recent data confirms that Bitcoin (BTC) purchases made on exchanges yearly since 2017 are now profit-yielding on average, with a user purchase turning profitable at a mark of $37,000. The current Bitcoin values are not just beneficial for recent investors but also for those who made a plunge back when the cryptocurrency was new. On-chain analytics company, Glassnode, reveals that for an investment to turn profitable, $34,700 is the golden benchmark.
In simpler terms, individuals who withdrew bitcoins from significant exchanges from the beginning of 2017 onwards, will see a positive monetary value compared to their year of withdrawal. This even applies to those who have invested during Bitcoin’s last bull run year when BTC/USD hit an all-time high of $69,000. The last time BTC/USD traded above the cost basis lines of the post-2017 period was at the conclusion of 2021.
Glassnode’s renowned on-chain analyst, Checkmate, in his commentary on 21st November, stated, "The average withdrawal price for Bitcoin investors across all yearly classes are now in profit,” He further explained this phenomenon as the 'DCA cost basis' for an average investor that started accumulating from 1-Jan of each year. According to the data, the 2021 Class had the highest entry price at $34.7k.
In addition, the exchange withdrawal realized price introduces another important metric in determining the present Bitcoin price range. As reported by Cointelegraph, the $39,000 mark holds significance, as it represents a return to profitability for 2021 bull market buyers on an aggregate level.
Credible Crypto, a much-followed analyst, predicts BTC's pre-halving price range to be contained between $39,000 and $50,000, with the halving scheduled for next April.
James Van Straten, a research and data analyst at CryptoSlate, unveiled a new record high for Bitcoin's realized price, referring to the total acquisition cost of the BTC supply. Meanwhile, coins held by short-term holders, specifically those that have moved beyond exchanges within the past 155 days, have higher acquisition costs than ever before.
The gap between the complete realized price and short-term holder’s realized price is approximately $10,000, reaching about $20,930 and $30,460, respectively. Van Straten highlighted the increased chances of these coins being utilized on any given day while signifying the influx of recent investors, with an impressive surge of 3%, the highest since May 2023.
Published At
11/21/2023 3:07:16 PM
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