Price below Cost Basis

Definition ∞ Price below cost basis signifies a situation where the current market price of a digital asset is lower than the average acquisition price of its holders. This condition implies that a significant portion of investors are experiencing unrealized losses on their positions. It often occurs during bear markets or severe price corrections, indicating widespread financial stress among market participants.
Context ∞ When cryptocurrency news reports on an asset’s price falling below its cost basis, it provides critical context for understanding market pain and potential capitulation. This scenario can lead to increased selling pressure as investors try to limit further losses, or it may signal a potential buying opportunity for those with a long-term outlook. Monitoring this metric helps analysts gauge the severity of market downturns and anticipate potential recovery phases.

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→Price Volatility Expectation

→Realized Price Support

→Cost Basis Breach

Recent Bitcoin Buyers Now Underwater Structural Market Risk Confirmed

When the price drops below the average cost of recent buyers, it signals market-wide loss and triggers a critical structural risk reset.

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→Risk Reduction Phase

→Bitcoin Price Support

→Necessary Market Reset

Veteran Bitcoin Holders Selling Forces Deeper Market Consolidation Phase

Experienced investors are selling over 22,000 BTC daily, pushing the price below the average cost of recent buyers and demanding a market reset.

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→Mid Term Bearish Phase

→Structural Weakness

→Short Term Holder Cost Basis

Short-Term Holder Cost Basis Breach Confirms Market Demand Exhaustion

The price dropping below the recent buyers' average cost confirms demand is exhausted, signaling a necessary, prolonged market consolidation.

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→Market Regime Shift

→Short Term Holder Cost Basis

→Price below Cost Basis

Long-Term Holders Are Selling into Fading Demand

The market has shifted into a structural mid-cycle slowdown as long-term investors realize profits and institutional capital exits.