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.
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