• Bitcoin has broken above three key investor cost-basis levels for the first time since the COVID-19 crash and the 2018-2019 bear market.
• The “realized price” indicator is used to measure the average acquisition price in the market by dividing the “realized cap” metric by the total number of coins in circulation.
• Investors who bought their coins within the last 155 days fall into the short-term holders (STHs) category, while those who have held for longer than 155 days fall into the long-term holders (LTHs) category.

The recent surge in the price of Bitcoin has been a welcome development for many crypto enthusiasts, as it has broken above three key investor cost-basis levels for the first time since the COVID-19 crash and the 2018-2019 bear market. To measure the average acquisition price in the market, data from the on-chain analytics firm Glassnode is used. The metric employed here is the „realized price,“ which is calculated by dividing the „realized cap“ metric by the total number of coins in circulation.

The „realized cap“ is a capitalization model for Bitcoin that assumes that each coin in the circulating supply has its real value as the price at which it was last moved rather than the current BTC price (which the normal market cap uses for its calculation). This means that if the normal price of Bitcoin dips below this indicator, the average holder can be assumed to have entered a state of loss.

The Bitcoin market can be divided into two primary cohorts: short-term holders (STHs) and long-term holders (LTHs). Investors who bought their coins within the last 155 days fall into the STHs category, while those who have held for longer than 155 days fall into the LTHs category.

The recent breakout above the three investor cost-basis levels is reminiscent of the April 2019 rally. At that time, the realized price of Bitcoin increased significantly, signaling the beginning of a bull market. This time, the situation is similar, with both short-term and long-term investors being rewarded for their patience.

The breakout is also seen as a sign of increased institutional interest in Bitcoin. Many large investors have been buying BTC over the past few months, which has further boosted the price of the leading cryptocurrency.

At this point, it remains to be seen if Bitcoin will continue its upward trend or if we will see a correction in the near future. Nevertheless, this recent breakout is a positive sign for the crypto market and could be a sign of more good news to come.