The price of BTC has reached a significant profit level of $34.7K for users on Bitcoin exchanges

The price of BTC has reached a significant profit level of $34.7K for users on Bitcoin exchanges

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by Max Nevskyi

3 years ago


The most recent data confirms that Bitcoin (BTC) purchased on exchanges annually since 2017 is now, on average, in a profitable position. This information has been compiled by Glassnode, an on-chain analytics firm. Exchange withdrawal statistics indicate that at the $37,000 price point, a user's purchase is, on average, "in the black."

Although Bitcoin's price surge beyond $30,000 last month brought profits to numerous investor groups, current price levels are especially beneficial for those who entered the market much earlier. According to Glassnode, which tracks the aggregate price at which coins have left exchange wallets each year since 2017, the magical threshold for turning a profit on investment is $34,700.

In simpler terms, anyone who withdrew bitcoins from a major exchange since January 1, 2017, is now in a better dollar position compared to the year of withdrawal. This includes individuals who made purchases during Bitcoin's last bull market year, during which BTC/USD reached all-time highs of $69,000.

The last time BTC/USD traded above all the cost basis lines established since 2017 was at the end of 2021. Glassnode's lead on-chain analyst, known as Checkmate, commented on November 21, stating that "the average withdrawal price for Bitcoin investors across all yearly classes is now in profit."

Additionally, the realized price from exchange withdrawals introduces another significant benchmark to the current BTC price range. As previously reported by Cointelegraph, $39,000 is also a crucial profitability threshold, representing the point at which 2021 bull market buyers, on average, return to profit.

This level also serves as the lower limit of the popular analyst Credible Crypto's BTC price target range before the upcoming halving, with an upper limit of $50,000. The halving is scheduled for next April.

Furthermore, James Van Straten, a research and data analyst at CryptoSlate, recently revealed a new all-time high for the total Bitcoin realized price, which represents the complete acquisition cost of the BTC supply. Additionally, short-term holders' (STH) coins, referring to the portion of the supply beyond exchanges that has moved in the past 155 days, now have a higher acquisition cost than ever before.

The total realized price and STH realized price are now approximately $10,000 apart, standing at around $20,930 and $30,460, respectively. This rise suggests an increased likelihood of these coins being spent on a given day and signifies an influx of new investors, with a remarkable 3% surge being the highest since May 2023, according to Van Straten.

It is important to note that this article does not contain investment advice or recommendations. All investment and trading decisions involve risk, and readers are encouraged to conduct their own research before making any decisions.

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