FameEX Hot Topics | Bitcoin’s Average Acquisition Cost Hits New Record of $40.9K in 2024

According to ARK Invest's “Big Ideas 2025” report, Bitcoin’s total cost basis—a measure of the original value of all Bitcoin positions—reached a record high of $40,980 by the end of 2024. Over the past year, this cost basis rose by 86%, culminating in a total valuation of $811.7 billion. Many investors consider this metric a reflection of Bitcoin’s long-term fair value and believe it could serve as a key support level during future bear markets.

Analysts, including Blockstream co-founder Adam Baker, noted that Bitcoin’s “base price” has already surpassed the $40,000 threshold, establishing a critical level of support. Some indicators, such as the 200-week moving average, suggest that Bitcoin’s base price is now near $44,000. This widely referenced technical indicator, which smooths out daily volatility, stood at $43,983 on February 11, while Bitcoin traded above $95,740, according to CoinGlass data.

Baker highlighted that the 200-week moving average crossed the $40,000 psychological milestone on October 18, 2024. He stated: “Bitcoin’s 200-week moving average effectively serves as the asset’s historical floor price, which has now surpassed $40,000. This metric, after factoring out volatility, represents a strong baseline for Bitcoin’s value.” However, in the short term, Bitcoin’s price remains sensitive to economic indicators. For instance, the U.S. Consumer Price Index (CPI) data scheduled for February 12 could influence market sentiment.

Nexo dispatch analyst Ilya Karchev pointed out that higher-than-expected CPI readings could refocus investor attention on potential interest rate hikes, impacting Bitcoin’s short-term trajectory. He also cited upcoming data from Japan’s producer price index (PPI), Germany’s inflation reports, and a series of UK indicators as additional factors that may shape market direction. Karchev added, “This week, the market faces both bullish potential and heightened volatility.”

Despite these headwinds, Bitcoin demonstrated resilience above the $95,000 level on February 9, even after experiencing its largest intraday sell-off since the collapse of Three Arrows Capital in 2022. Concerns over escalating trade tensions between the U.S., China, and other major economies triggered this massive sell-off, underscoring Bitcoin’s vulnerability to macroeconomic pressures.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.