- Bitcoin’s recent surge has brought relief to investors who bought during the 2021 bull run.
- On-chain data indicates that these investors are nearing their break-even point.
- BTC’s ascent to $50,000 signifies renewed optimism and bullish sentiment in the market.
Recent data from on-chain analytics indicates that investors who entered the Bitcoin market during the 2021 bull run are on the brink of breaking even, thanks to the latest surge in BTC price.
Analyzing the Realized Price metric, which reflects the average acquisition price of Bitcoin within the market, CryptoQuant’s CEO, Ki Young Ju, highlighted in a recent post on X that the current price trajectory is aligning with the cost basis of 2021 bull run buyers.
The Realized Price serves as a crucial indicator, signaling whether holders are currently in profit or at a loss. When the spot price surpasses this metric, it suggests holders are in profit territory. Conversely, a spot price below the Realized Price indicates a market in a state of loss.
For investors who entered the market during the 2021 bull run, represented by the 2- to 3-year-old UTXO Age Band, recent trends are promising. This age band refers to tokens divided based on their age, corresponding to the period between February 2021 and February 2022.
Recent data reveals that the Realized Price for this specific group has hovered around $49,340. With Bitcoin trading at $48,300 at the time of analysis, it indicated that these investors were nearing their break-even point.
However, with Bitcoin’s subsequent surge, surpassing the $50,000 milestone, it suggests that the 2021 bull run investors are now collectively in profit territory.
While many investors may have succumbed to losses during the subsequent bear market, those who persevered are now reaping the rewards of their resilience, demonstrating the power of ‘diamond hands’ in navigating volatile markets.
Although these investors may not be celebrating significant gains, achieving break-even after years of patience is undoubtedly a notable milestone.
BTC’s ascent to $50,000 marks a significant milestone, reflecting renewed bullish sentiment and sparking optimism among investors as the cryptocurrency continues its upward trajectory.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.