• BTC’s price has rallied by 40% since 1 January, leading many of its holders to log profits on their BTC holdings.
• The cost basis for any BTC holder is the average purchase price of the BTC they possess, which determines capital gains or losses when the BTC is sold.
• According to Twitter analyst Will Clemente, the cost basis for short-term and long-term BTC holders were $18,900 and $22,300, respectively.
Bitcoin [BTC], the leading coin, has seen its price rally by an impressive 40% since the start of 2021. Investors have recorded significant gains, and now, a price reversal might follow. Currently trading at the $23,200 price mark, BTC is trading at levels last seen in August 2022. The rally in BTC’s price has had an influence on the overall crypto market, with global cryptocurrency market capitalization increasing by 21% in the last month, according to data from CoinGecko.
The growth in BTC’s price has led to many of its holders logging profits on their BTC holdings. The cost basis for any BTC holder is the average purchase price of the BTC they possess. This cost basis determines capital gains or losses when the BTC is sold. Twitter analyst Will Clemente revealed the cost basis for short-term and long-term BTC holders were $18,900 and $22,300, respectively. This means that BTC holders, in aggregate, are no longer underwater.
The question remains: How much are 1, 10 and 100 BTCs worth today? The answer is that holders of these amounts of BTC are in profit. However, the question of how long this profit will last is yet to be seen. BTC is notoriously volatile and the price could swing either way in the coming weeks. In the meantime, investors should keep an eye on developments in the crypto market, as well as the cost basis for their BTC holdings, to maximize their gains.