Definition ∞ Supply acquisition price refers to the average cost at which the entire circulating supply of a digital asset was acquired by its current holders. This on-chain metric aggregates the purchase prices of all coins or tokens presently in existence, offering a broad perspective on the market’s overall profitability or loss. It serves as a fundamental indicator of the collective financial position of an asset’s investor base. This provides a macro view of market sentiment.
Context ∞ Crypto news and on-chain analysis often cite the supply acquisition price when assessing the overall health and potential direction of a digital asset market. If the current market price falls below the supply acquisition price, it suggests that the majority of holders are experiencing unrealized losses, which can indicate a bear market bottom or significant selling pressure. Conversely, a price well above this level points to widespread profitability and strong market confidence.
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