Cost Basis Levels

Definition ∞ Cost basis levels represent the original purchase price of an asset, adjusted for any commissions or fees incurred during acquisition. This metric is fundamental for investors to determine their capital gains or losses upon selling a digital asset. It establishes the financial reference point for tax calculations and performance assessments. Accurate tracking of these levels is crucial for financial accountability.
Context ∞ In crypto news, cost basis levels are frequently referenced when discussing investor profitability, market psychology, and potential selling pressure. Large concentrations of assets held at specific price points can act as significant support or resistance levels. Reports often analyze aggregated cost basis data to assess the overall financial health of market participants and forecast their behavior.