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Bitcoin’s Realized Price Rises: Short-Term Holders Eye $50K Milestone

In the ever-evolving landscape of cryptocurrency, Glassnode, a prominent blockchain analytics firm, has shed light on a significant development: the realized price of Bitcoin has seen notable fluctuations this past week. The realized price is a metric that reflects the average price at which each Bitcoin was last moved on-chain, providing a snapshot of the collective market sentiment.

A key figure to consider is the short-term holder (STH) realized price. This metric indicates the average price at which coins, specifically those moved outside of exchange reserves within the last 155 days, were acquired. Remarkably, the STH realized price is on an upward trajectory, approaching the $50,000 mark—a substantial increase from $40,000 just one month prior.

Graph showing the 7-day rate of change for short-term holders cost basis from 2014 to 2024 | Source: Glassnode

This rise in the STH realized price is concurrent with an increase in Bitcoin’s market price, suggesting a growing supply of short-term holders. This phenomenon is often attributed to the ‘Fear of Missing Out’ (FOMO) as traders and investors hurry to buy into the market amidst positive price trends. The data is telling: there’s been a 9% jump in the STH realized price within a mere week, echoing the patterns observed in December 2020. Back then, such movements were the harbingers of a bull run that saw Bitcoin’s price skyrocket from around $17,000 to a staggering $64,000 in 2021.

Looking at the current market dynamics, there’s a sense of déjà vu. The conditions are reminiscent of the post-December 2020 environment when the STH realized price experienced a 20% increase, signaling the approach of a market peak. If history is any guide, we may be on the brink of another significant growth phase for Bitcoin.

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