Key Points:
- The realized price of bitcoin for all investors has exceeded $41,000 and was approximately $65,900 for the year 2024.
- Buyers from last year saw an unrealized profit of about 40% on average.
- As 2025 approaches, the average cost basis is around $95,500, suggesting slight profits for these investors.
The price of bitcoin (BTC) may have surged last year, more than doubling in value; however, purchasers who invested in the leading cryptocurrency during 2024 experienced an average realized price of $65,901 by December 31. Given that the market price reached approximately $93,000, these investors have an unrealized profit margin of around 40%.
Understanding the realized price is critical for assessing the overall gains or losses of individual investors and their cost basis. For investors to break even, bitcoin's value would need to drop by about 31%. The debut of U.S.-listed spot Exchange-Traded Funds (ETFs) on January 11 serves as a good benchmark for evaluating the cost basis.
Monitoring the realized price can indicate market bottoms, particularly when prices fall below the realized price level from 2024. This occurred multiple times in the middle of the year and once in January after the ETF launches.
As we step into 2025, the average purchase price per investor stands at approximately $95,500, allowing for slight profits at the year’s start, with bitcoin trading above $96,000 at the last update.
Traditionally, the realized price provides an essential support for bitcoin during bear market phases and rarely dips beyond it.
