Average Acquisition Price represents the mean cost at which an investor has obtained a specific digital asset over a series of purchases. This metric is calculated by dividing the total cost of all acquired units by the total number of units purchased. It serves as a personal benchmark for assessing the profitability of an investment. Understanding this price helps determine an investor’s breakeven point.
Context
In cryptocurrency markets, the average acquisition price is a key data point for individual investors and analysts to gauge market positioning and potential support or resistance levels. Collective average acquisition prices across the market can signal areas where many holders might be underwater, potentially influencing future selling pressure. This metric offers valuable insight into the aggregate cost basis of market participants.
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