As per the sources, the recent data from Glassnode has revealed some fascinating aspects of Bitcoin. The Bitcoin long-term holder cost basis is above the realized price of Crypto at the moment. In fact, the latest weekly report from the analytic firm tells us that the LTH cost basis has remained below the price for around 248-575 days in the previous bear markets.
The Bitcoin Long-term holders or LTH include the investors who have been holding their coins for 155 days without selling or moving them. Moreover, it’s also worth noting that we multiply each coin in circulation with the previous price and then calculate the realized cap of the market.
The recent graph from Glassnode has shown that the cap price is now quite better than in previous years. You can also derive the price if you just divide the metric by the total number of coins in circulation. So, the ‘realized price’ is the cost basis of an average holder in the Bitcoin market as we know.
Glassnode’s Chart and The Revelation
So, recently, Glassnode has produced a chart as per the holder cost basis. The new chart has also compared the cost basis for LTH with that of the whole market during the Crypto history.
Furthermore, the chart shows that the LTH cost basis has crossed the above-realized price. Week 30 of Glassnode’s chain has clearly shown the graph. Moreover, one look at the graph will highlight the previous Bitcoin bear markets and trends of the two ‘realized prices’. So, it seems that the cost basis of LTH has always crossed above the market’s entire realized price.
Also read: Bitcoin Price Prediction
Why Did The LTH Cost Basis Cross Above The Entire Market’s Realized Price?
Considering the fact that the Crypto has approached bear lows, the LTH cost basis has crossed above the market’s price. So, the experts are of the opinion that it happens due to the fact that LTHs are least likely to sell at any point.
Moreover, the rest of the market just panics and sells the easier ones during their downtrends. On the other hand, LTH tries to weather the storm head-on. Glassnode’s graph does show this very fact.
It’s quite apparent that the LTH price basis has remained higher than the ‘realized price’ for around 248 days and up to 575 days during the last bear markets. Moreover, the recent patterns also show that the LTH price basis has crossed above the other metric. However, so far, the indicators have only observed this trend for only 17 days.
The BTC Price for Now
As per the sources, Bitcoin’s price is now floating around $20k, down to around 9-9.5% in the past week. In fact, over the last month, this crypto has lost around 3% of its value. We don’t know the proper reason for this one. However, BTC will pick up the pace for sure.
Considering the fact that it has seen this type of tendency in the past, it will surely go up once again. As for Glassnode’s view, well, it has posted a graph on this aspect as well. The Bitcoin on-chain cost basis’s LTH cost basis has crossed above the realized price is perhaps a sign of the things to come.