Bitcoin’s average acquisition cost reached a record high of $40,980 in 2024, reflecting an 86% increase over the previous year. Analysts suggest that Bitcoin’s floor price is near $44,000, supported by key indicators such as the 200-week moving average. Upcoming economic data may influence market performance as Bitcoin maintains stability above $95,000 despite recent volatility.

In 2024, Bitcoin’s average acquisition cost surged to an unprecedented $40,980, marking an 86% annual increase, according to ARK Invest’s Big Ideas 2025 report. This figure reflects the aggregate cost basis, which is essential for understanding the original value of all Bitcoin holdings. Investors often gauge this metric as a potential long-term fair value, possibly acting as a vital support level in future bear markets.

Analysts, including Adam Back, co-founder of Blockstream, assert that Bitcoin’s floor price has already exceeded the $40,000 threshold, establishing a significant support level. Furthermore, certain metrics, such as the 200-week moving average, indicate that Bitcoin’s floor price is nearing $44,000. As of February 11, the 200-week moving average registered at $43,983 amid Bitcoin trading above $95,740.

In the near term, Bitcoin’s price is highly susceptible to economic indicators, particularly the upcoming US Consumer Price Index (CPI) data set for release on February 12. Iliya Kalchev, a dispatch analyst at Nexo, noted that the current market conditions foster both bullish potential and volatility for the coming week.

Despite facing one of the most considerable intraday selling events since the collapse of Three Arrows Capital, Bitcoin remained stable above the $95,000 mark on February 9. This significant sell-off was largely attributed to rising tensions in trade relations among the US, China, and other major global economies.

In conclusion, 2024 has seen Bitcoin’s average acquisition cost rise to a record high, indicating robust market activity. The established floor price suggests a solid support level, while both current market volatility and economic data will continue to influence Bitcoin’s price dynamics. Investors remain vigilant as the cryptocurrency market navigates these complexities.

Original Source: www.tradingview.com

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