Bitcoin (BTC) Reclaims Short-Term Holders Cost Basis, Reigniting $100K Possibility

After constantly struggling to execute a bullish move for several days due to a broader market decline, Bitcoin, the largest cryptocurrency asset has once again reclaimed the average cost basis for short-term holders, following a slight recovery during the week.

Bitcoin price has once again risen above the average cost basis for short-term holders, following a slight recovery during the week.

Market observers and investors often consider the rise over the cost basis for short-term holders as a bullish indication.

Highlighting the development in his recent research, Maarten, a market expert and community manager at CryptoQuant, stated that this scenario suggests a return to profitability for investors who have owned the crypto asset for fewer than 155 days, which implies restored confidence among these investors.

“This is encouraging because, when Bitcoin reverts to its typical cost base, short-term holders often increase their holdings, establishing a support level,” the market expert noted, adding that this scenario has played out twice in 2023, each time resulting in at least 30% gains.

“Recently, the Bitcoin price has reclaimed the STH Realized Price. This is a positive sign because short-term holders often add to their positions when Bitcoin returns to their average cost basis, creating a support level,” the analysis stated.

“Since 2023, Bitcoin has reclaimed the short-term holder Realized Price twice, each time resulting in at least 30% profits.”

It bears mentioning that Bitcoin’s average cost basis for short-term holders in 2023 has acted as a support level at least three times now.

The last time BTC fell below the STH-Realized Price was in mid-March, following a broader market decline that saw the digital asset fall below the $30,000 zone.

However, the asset quickly recovered and has since remained above the cost basis for short-term holders.

Bitcoin Price Could Rise to $100,000 This Year

While optimism around BTC has decreased, as recently reported by Santiment, the possibility of the digital asset reaching the $100,000 mark has experienced a substantial increase.

According to Kalshi, an American-based legal exchange, BTC’s chance of hitting the pivotal level now stands at 22%.

Data from the platform also reveals an 8% chance of the asset hitting the $150,000 price level and a 57% possibility of reaching the $80,000 threshold.

Kalchi bases its predictions directly on traders who wager on the price of BTC in the future.

Moreover, the exchange believes the prediction could manifest as BTC continues to rise with the odds of Donald Trump winning the upcoming GOP Presidential election in November this year.

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