Data from Glassnode shows the Bitcoin long-term holder cost basis is currently above the realized price of the crypto.
From this capitalization, a “realized price” can be derived by simply dividing this metric with the total number of coins in circulation.
The realized price can be thought of as the cost basis of the average holder in the Bitcoin market. The below chart shows how the cost basis for LTHs has compared against that of the whole market during the history of the crypto.
As you can see in the above graph, the previous Bitcoin bear markets and the trends of the two realized prices during them are highlighted.
It seems like the LTH cost basis has always crossed above the entire market’s realized price as the crypto has approached bear lows.
This happens because LTHs are the cohort least likely to sell at any point, while the rest of the market panic sells easier during downtrends. LTHs try to weather the storm even after going underwater, but other holders dump, thus lowering the average realized price.
From the chart, it’s apparent that the LTH price basis has remained above the realized price for at least 248 days and upto 575 days during the last bear markets.
Recently, the pattern of the LTH price basis crossing above the other metric has once again formed. But so far, the indicators have only observed this trend for 17 days, much lesser than historical cycles.
The below chart shows the trend in the price of the coin over the last five days.
