More than half of BTC invested supply has a cost basis above $88,000
Sixty-three percent of invested Bitcoin wealth has a cost basis above $88,000, putting most investors underwater.Summary
Data from Checkonchain, utilizing the UTXO Realized Price Distribution (URPD) indicator, reveals that 63% of all wealth invested in Bitcoin has an average acquisition cost basis exceeding $88,000, meaning the majority of capital is currently underwater relative to the current trading price.
The price of Bitcoin has been trading between $80,000 and $90,000 since November. The URPD highlights significant capital trapped between $85,000 and $90,000, suggesting that a drop below $85,000 could trigger intensified selling pressure as investors try to limit losses. Furthermore, there is relatively little supply between $70,000 and $80,000, making a rapid move toward $70,000 likely if the $80,000 support level fails.
This situation adds risk as long-term holders are already selling at the fastest pace in six months. Bitcoin is set to end January relatively flat after three consecutive months of declines, contrasting with February's historical tendency for average gains of about 13%. The market's ability to absorb this large overhang of underwater supply will likely determine future price action.
(Source：CoinDesk)