All Bitcoin cohorts are in profit for the first time since October 2021
Profitable withdrawals shift crypto market sentiment as investors pivot to gains.
Quick Take
Recent CryptoSlate analysis revealed a significant shift in the crypto market sentiment influenced by profitable Bitcoin withdrawals from exchanges.
The average withdrawal prices for cohorts categorized by date paint an intriguing picture of the market-wide cost basis. The all-time average withdrawal price stands at $12,003, escalating gradually with every passing year and reaching $34,706 in 2021. A noteworthy observation is this is the first instance since October 2021 that all yearly cohorts have been in profit.
| Year | Realized Price |
|---|---|
| All-time | $12,003 |
| 2017+ | $16,109 |
| 2018+ | $19,540 |
| 2019+ | $22,590 |
| 2020+ | $26,693 |
| 2021+ | $34,706 |
| 2022+ | $27,001 |
| 2023 | $27,198 |
Table showing the realized price for cohorts categorized by date from 2017 to 2023 (Source: Glassnode)
The 2021 cohort, which previously realized a price of almost $50,000, has successfully dollar-cost averaged its realized price to $34,706. This indicates a strategic shift from unrealizing or realizing losses to recording profits or unrealized profits. This trend has resulted in a massive transformation in market sentiment, with holders now more inclined towards profit-taking.
Despite Bitcoin's significant leap to $38,000 on Nov. 9, only $1 billion of profit was realized. This may seem marginal compared to the bull market of 2021, but consistent profit-taking over the past few weeks suggests that investors' appetite for higher gains remains strong.
