A Bitcoin First, Glassnode Says: The Threshold It Never Fell Below in This Bear Market

Glassnode said it was the first time Bitcoin had not closed below its realized price during a bear market. The finding indicates that the on-chain average cost basis remained in profit, not that every investor did.

According to the company’s post, Bitcoin has not closed below the Realized Price level during the current bear market. Glassnode interpreted this as meaning the average BTC holder remained in profit throughout the period.

What does realized price show?

Realized price is an average cost-basis measure calculated using the prices at which Bitcoin in circulation last moved on-chain. When the market price is above this level, it means the total supply is valued above its average cost according to this measure. It does not mean every investor bought at the same price or that no investor is at a loss.

Another important distinction here is the closing price. The source says there were no closes below this level; that does not mean every intraday price movement stayed above the threshold.

How it differs from previous bear markets

In Glassnode’s chart showing data from 2017 onward, the Bitcoin price is compared with realized price and the cost bases of short-term and long-term holders. In contrast with periods in previous bear markets when Bitcoin fell below realized price, the latest cycle stands out for having no closes below this threshold.

In its post, the company also directed readers to its weekly Week On-chain report. In its summary of the report, it said Bitcoin had moved above cost levels that had pressured its price throughout the year, profit-taking had remained light, and ETF buying had increased.

The realized price finding describes how the bear market played out in terms of average cost basis. On its own, it does not show that prices will not fall further or that this level will continue to hold in the future.