The realized price suggests that Bitcoin buyers had an average gain of 40% last year.

In 2024, Bitcoin buyers had an average realized price of $65,901.

Despite Bitcoin’s price more than doubling last year, those who bought the cryptocurrency in 2024 saw, on average, a significantly smaller return, according to a metric known as the realized price.

The realized price is the average price at which Bitcoin last moved on-chain. While the realized price for all Bitcoin since its creation in 2009 stands at around $41,000, for coins bought in 2024, it was $65,901 by the end of the year. With the market price closing around $93,000, this means that buyers from 2024 were sitting on an unrealized profit of approximately 40%.

Tracking the realized price is key to understanding the overall profitability and cost basis of investors. In fact, Bitcoin would need to fall by roughly 31% for 2024 buyers to return to their break-even point. The launch of U.S. spot-listed exchange-traded funds (ETFs) on January 11 occurred near the start of the year, closely aligning with this cost basis for many investors.

The realized price serves another important purpose. Historically, when Bitcoin’s market price falls below the realized price, it has often marked a local price bottom. This occurred in January after the launch of ETFs, as well as several times during the middle of the year. Paying attention to the realized price for 2024 buyers could have been a useful trading strategy.

As we enter 2025, the average cost basis for Bitcoin buyers has risen to approximately $95,500, meaning they are seeing a slight profit as the year begins. Bitcoin is currently trading at just over $96,000.

Additionally, the realized price has proven to be a strong support level during bear markets and rarely trades below it.