BTC's average cost basis surpassed by Bitcoin for short-term holders😊

Bitcoin Reclaims Average Cost Basis for Short-Term Holders

Following a slight recovery during the week, Bitcoin, the largest cryptocurrency asset, has once again regained the average cost basis for short-term holders. This resurgence marks a positive development for investors who have owned the crypto asset for fewer than 155 days, signaling restored confidence among this group of investors.

Market Expert Insights

Maarten, a market expert and community manager at CryptoQuant, highlighted this significant development in his recent research.

Return to Profitability

The recent recovery of the price of Bitcoin to the Short-Term Holders (STH) Realized Price is a promising sign for short-term holders.
When Bitcoin aligns with its typical cost base, short-term holders often increase their positions, creating a support level for the asset.

Potential for Future Gains

Bitcoin has previously rebounded above the short-term holder’s realized price twice since 2023, resulting in gains of at least 30% each time.
The current recovery could potentially lead to another 30% rise or even higher for the digital asset, driven by the ongoing bull cycle.

Market Sentiment Shifts

Santiment, a leading on-chain intelligence platform, recently noted a decrease in positive sentiment around BTC, despite a moderate rebound in the cryptocurrency market this week.
Traders are increasingly opening short positions on Binance, anticipating a price decline for BTC.

Potential for $100,000 Per BTC

Despite the reduction in positive sentiment towards Bitcoin, the possibility of the digital asset reaching $100,000 has significantly increased. According to Kalshi, an American-based legal exchange, BTC’s chance of hitting the pivotal $100,000 mark now stands at 22%, with additional predictions:

Predictions and Odds

There is an 8% chance of BTC reaching $150,000 and a 57% possibility of hitting the $80,000 threshold based on the exchange’s data.
Kalchi’s predictions are directly influenced by traders betting on BTC’s future price movements.

External Factors

The exchange links the potential rise in Bitcoin’s price with the odds of Donald Trump winning the upcoming GOP Presidential election in November this year.

Hot Take: Bitcoin’s Resurgence and Future Prospects

After reclaiming the average cost basis for short-term holders, Bitcoin is positioned for potential gains in the coming days. Despite shifts in market sentiment, the digital asset shows promise of reaching the $100,000 milestone and beyond. Traders and investors are closely watching Bitcoin’s movements as it navigates through the ongoing bull cycle, signaling positive momentum in the cryptocurrency market.