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On-chain data shows the Bitcoin short-term holder whales have recently been entering at three times higher prices than the cost basis of the long-term holder whales.
New Bitcoin Whales Have Cost Basis Around $91,900
In a new post on X, CryptoQuant author Axel Adler Jr has discussed how the Realized Price compares between the two major sides of the whale cohort on the Bitcoin network. The “Realized Price” here refers to an indicator that keeps track of the cost basis or acquisition level of the average investor in the BTC market.
When the value of this metric is above the spot price of the asset, it means the holders as a whole are carrying a net unrealized loss. Similarly, the indicator being under the coin’s value suggests the dominance of profit among the investors.
In the context of the current topic, the Realized Price of the entire sector isn’t of interest, but rather that of two specific investor cohorts: the short-term holder and long-term holder whales.
The short-term holders (STHs) and long-term holders (LTHs) make up the two main divisions of the BTC network based on the basis of holding time. All investors who purchased their coins within the past 155 days are put into the STHs, while those who surpass this threshold mature into the LTHs.
The STHs and LTHs of focus here aren’t just any ordinary investors, but rather the “whales,” entities who are carrying more than 1,000 BTC ($103.3 million) in their balance.
Now, here is a chart that shows the trend in the Bitcoin Realized Price for the STH and LTH whales over the past few years:
As is visible in the above graph, the Bitcoin Realized Price of the whales who got in during the past 155 days stands at $91,900 at the moment. With BTC’s recent recovery rally, the spot price has gained a notable distance above this line, so the cohort should be comfortably in the green now.
That said, their situation is nowhere near as good as that of the veteran whales, who have their cost basis at just $32,200. This indicates that there is a spread of a whopping 185% between the bottom line of the two groups.
According to the analyst, this indicates a growing confidence and FOMO among the investors, which is driving them to buy at even the recent high prices. This trend is in sharp contrast to the 2022 bear market, where the difference between the cost basis of the two groups fell to just 65%.
It now remains to be seen whether demand from the new whales will continue to be strong in the near future, potentially driving up the spread between the cohorts further. Back in the 2021 bull market, the gap peaked at 437%.
BTC Price
With the latest continuation of the recovery rally, Bitcoin has managed to reclaim the $103,000 level.
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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