Originally posted here.
Author: Hououin Kyouma
Overview
The data shows that different Bitcoin investor cohorts have now clustered their cost bases together in a tight range. What can this tell us about the current market? All Bitcoin Investor Groups Cost Between $18.7K and $22.9K. According to Glassnode’s latest weekly report, the broader BTC market is currently worth around $20,200. Here, “cost basis” refers to the price at which the average investor in the Bitcoin market acquires their coins. The entire market can be divided into two main groups of investors: “short-term holders” (STHs) and “long-term holders” (LTHs). The STH group includes all investors who bought their coins in the last 155 days. LTHs, on the other hand, are made by holders holding their coins for more than 155 days. Statistically, the LTH group is the least likely cohort to sell their coins at any given point, as the longer investors hold their coins, the less likely they are to break their silence. Related Read: Bitcoin Has Been Undervalued For 170 Days Now, How Does It Compare To Previous Months? The cost basis of either of these two groups is the price at which the average investor of that cohort receives their coins. Now here’s a chart showing the trend in the price base of both LTHs and STHs, as well as the broader Bitcoin market: It looks like the price has been rejected by the STH cost base very recently | Source: Glassnode’s The Week Onchain – Week 49, 2022 As you can see in the chart above, the value of Bitcoin STHs decreased as the bear market went on, as this cohort only included investors who bought. recently. Of course, during the bear the “last” prices were lower and lower. As investors who bought during high prices are now part of this group, the value of LTH has risen slightly. Currently, the value of this metric is 22.9 thousand dollars. Related Read: Bitcoin Hash Ribbon Gold Cross Fails For The First Time That’s not far from the $18.7K value of STHs and the broader market’s $20.2K value. This means that in the current market, different groups of investors have acquired their coins at similar prices. What this means is that the perceived risk and opportunity are the same among all owners, whether short-term or long-term. “Thus, the aggregate market will begin to behave more uniformly in response to volatility,” the report said. BTC Price At the time of writing, the price of bitcoin has increased by 3% in the last week and hovers around $17,000. BTC still hovering around the $17k mark Source: BTCUSD on TradingView Featured image from iStock.com, TradingView.com, Charts from Glassnode.com
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The data shows that different Bitcoin investor cohorts have now clustered their cost bases together in a tight range. What can this tell us about the current market?
All Bitcoin Investor Groups are worth between $18.7k and $22.9k.
According to Glassnode’s latest weekly report, the broader BTC market is currently worth around $20,200.
Here, “cost basis” refers to the price at which the average investor in the Bitcoin market acquires their coins.
The entire market can be divided into two main groups of investors: “short-term holders” (STHs) and “long-term holders” (LTHs).
The STH group includes all investors who bought their coins in the last 155 days. LTHs, on the other hand, are made by holders who have held their coins for more than 155 days.
Statistically, the LTH group is the least likely cohort to sell their coins at any given point, as the longer investors hold their coins, the less likely they are to break their silence.
The cost basis of either of these two groups is the price at which the average investor of that cohort receives their coins.
Now here’s a chart showing the trend in the price base of both LTHs and STHs, as well as the broader Bitcoin market:
It looks like the price was recently rejected by the STH cost basis | Source: Glassnode’s The Week Onchain – Week 49, 2022
As you can see in the chart above, the value of Bitcoin STHs decreased as the bear market progressed, as this cohort only included investors who had recently bought. Of course, during the bear the “last” prices were lower and lower.
As investors who bought during high prices are now part of this group, the value of LTH has risen slightly. Currently, the value of this metric is 22.9 thousand dollars.
That’s not far off STHs’ $18.7K value base and the broader market’s $20.2K value. This means that in the current market, different groups of investors have acquired their coins at similar prices.
What this means is that the perceived risk and opportunity are the same among all owners, whether short-term or long-term. “Thus, the aggregate market will begin to behave more uniformly in response to volatility,” the report said.
BTC price
At the time of writing, the price of bitcoin has increased by 3% in the last week and hovers around $17,000.
BTC is still hovering around the $17k mark Source: BTCUSD on TradingView
Featured image from iStock.com, Charts from TradingView.com, Glassnode.com