BTC nears $89K as long-term holder cost basis tests investor sentiment

Bitcoin’s move toward the $88,000-$89,000 range is putting trading activity by investors who have held the asset for at least six months in focus, according to an analysis by on-chain analyst Darkfost. Darkfost said the average cost basis for holders in the 18-month to two-year cohort is around $88,350, while the figure for six- to 12-month holders is about $89,200. With the two groups clustered at similar levels, investor sentiment could shift sharply if Bitcoin enters that range. Darkfost added that holders with less than one year overall have continued to face losses, and some may have bought near the previous market peak, which could prompt selling as the price approaches their average entry level. At the same time, investors who endured prolonged losses may buy more Bitcoin to lower their average cost basis. With most nearing a return to profit, selling and additional buying could emerge at the same time.