Bitcoin's $115.2k Cost Basis: A Critical Market Floor ∞ Insights

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Briefing

Bitcoin’s market is in a delicate equilibrium, with its price currently positioned above the $115.2K cost basis for 95% of its supply. This on-chain metric acts as a critical demand-side floor, suggesting that maintaining this level is essential for continued upward momentum. Derivatives markets show a balanced but fragile sentiment, characterized by flushed leveraged traders and record options open interest, indicating heightened sensitivity to price movements. The most important data point is that 95% of Bitcoin’s supply is in profit above $115.2K.

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Context

Many market participants are questioning Bitcoin’s ability to sustain recent gains and identify key levels that could dictate its future trajectory. Is the market truly stable, or is it poised for a significant shift? This data helps clarify the underlying on-chain support and the role of derivatives in shaping short-term price action.

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Analysis

The “cost basis of supply” represents the average price at which coins were acquired. When Bitcoin’s price trades above the cost basis of a large percentage of its supply (like 95% at $115.2K), it indicates that most investors are in profit, which often strengthens conviction and reduces selling pressure. A price sustained above this level suggests robust demand. Conversely, a drop below this threshold could trigger profit-taking or capitulation, leading to further price contraction.

Recent derivatives activity, including a peak in Perpetual Open Interest at 395k BTC followed by a stabilization around 378k ∞ 384k BTC, shows that leveraged positions are being flushed, creating a more balanced, albeit fragile, market structure. Record Options Open Interest at 500k BTC, especially with a large September 26th expiry, means options traders are actively hedging or speculating, potentially amplifying spot volatility around key strike prices. This confluence of on-chain support and derivative dynamics creates a sensitive market.

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Parameters

95% Supply Cost Basis ∞ $115.2K BTC
Current Bitcoin Price ∞ ~$117.2K BTC
Perpetual Open Interest Peak ∞ 395K BTC
Options Open Interest Record ∞ 500K BTC
September 26 Options Expiry ∞ Largest in Bitcoin history
Long-Side Liquidation Wall ∞ $112.7K
Short-Side Liquidation Wall ∞ $121.6K

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Outlook

This insight suggests that Bitcoin’s immediate future hinges on its ability to firmly hold the $115.2K cost basis. Sustained trading above this level could foster continued demand-driven momentum, potentially leading to further upside. A confirming signal to watch for is a continued stabilization or increase in spot demand and a decrease in liquidation events around current price levels. Conversely, a decisive break below $115.2K would signal weakening conviction and increased downside risk.