Bitcoin Price Soars Above Short-Term Holder Cost Basis

Crypto analyst Axel Adler noted that Bitcoin is trading at approximately $83,700, which is 14% above the cost basis of short-term holders (STH). The STH cost basis rose by 1.2% over the past week, increasing from $72,800 on September 24 to $73,700.

Despite this continued rise in cost basis, short-term holders still maintain an unrealized profit of about 13.7%, down from 15.4% a week ago. This indicates that even though the STH cost basis is rising, short-term holders are still benefiting from holding onto their Bitcoin.

In contrast, long-term holder (LTH) cost basis declined slightly by approximately 0.3% over the past week, from $48,900 to $48,800, the steepest weekly drop this year so far. Bitcoin’s current price is roughly 72% above the LTH cost basis.

Adler noted that changes in the LTH cost basis are primarily driven by shifts in holding periods, as some higher-cost positions may transition into the short-term holder category, thereby pushing up the STH cost basis.