Bitcoin Average Cost Basis Reaches $95,500 as 2025 Begins
The bitcoin (BTC) price more than doubled last year; however, investors who purchased the cryptocurrency during 2024 experienced an average unrealized profit of approximately 40%. This is based on the realized price, which represents the average value of all bitcoin calculated at the last price movement on-chain. The realized price for BTC since its inception in 2009 is around $41,000, while coins bought last year had a realized price of about $65,901 by December 31. With the market closing around $93,000, this indicates that 2024’s buyers would need a 31% decline in bitcoin's price to reach break-even levels.
Monitoring the realized price is crucial for understanding individual participants' profit or loss and cost basis. The debut of U.S. spot-listed exchange-traded funds (ETFs) on January 11 provides a relevant reference point for cost basis calculations. Historically, when the bitcoin price falls below the realized price for a given cohort, it often marks a local bottom. This trend was observed once in January after the ETF launch and multiple times mid-year, suggesting that tracking the cost basis of the 2024 group could have been a beneficial trading strategy.
As 2025 begins, the average cost basis stands around $95,500, placing buyers at a slight profit since bitcoin is currently trading above $96,000. Furthermore, the realized price historically serves as a strong support level during bear markets, rarely trading below it.
