Bitcoin speculators have just reached a new milestone as their average purchase price has first surpassed the 100,000 USD mark.
According to the latest data from on-chain analytics company Glassnode, as of Tuesday (July 15), the cost basis* of short-term investors (STH) has officially reached six figures.
The cost basis of STH Bitcoin has now reached 100,000 USD
Speculator groups in the Bitcoin market are currently buying at an average price of 100,000 USD/BTC.
When analyzing the cost basis of different holder groups, Glassnode confirms that market participants in the last 6 months have spent an average of over 100,000 USD for each BTC.
The STH group is said to be more sensitive to short-term price fluctuations and easily influenced by unexpected market trends. Their cost basis (also known as the exercise price) often forms a reliable support zone during Bitcoin's bull cycles.
Therefore, the cost basis exceeding the 100,000 USD mark further reinforces the importance of this price range in case BTC/USD enters a deeper correction.
"Meanwhile, both short-term (STH) and long-term (LTH) investors did not miss the opportunity to take profits around the historical peak. Glassnode has confirmed that within just 24 hours up to 4:00 AM ET on Tuesday (which is 3:00 PM Tuesday Vietnam time), the total profit-taking volume of these two groups reached 3.5 billion USD."
"This is one of the largest profit-taking days for BTC this year – mainly carried out by long-term holders."
Bitcoin holders have taken profits after a strong rally
Before the profit-taking wave occurred, Glassnode warned that BTC's recent high profits could drive holders to sell to realize profits, regardless of how long they have been in the market.
"Capital flow indicators show that activity from the STH group is slightly increasing; however, the LTH group still plays a dominant role – a factor supporting market stability," according to the latest newsletter from Glassnode.
"Meanwhile, the Profit/Loss indicators are signaling caution. With the increased profit-taking volume and nearly 99% of the supply in profit, it can be seen that the enthusiasm of the community is very strong and poses a risk of correction."
According to analysts, whales have also taken advantage of this rally to realize profits. Among them is a mysterious address holding 80,000 BTC, which just reactivated after 10 years of "hibernation" and transferred 40,000 BTC to the Galaxy Digital exchange wallet today, according to data from Lookonchain.
* Cost basis is the initial value of an asset for tax purposes, usually the purchase price, adjusted for stock splits, dividends, and capital distribution repayments.