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Analysis of Bitcoin Withdrawal Prices from Major Exchanges
Examining the average withdrawal prices of Bitcoin from leading digital asset exchanges using data from Glassnode can provide valuable insights into the market’s cost basis. According to Glassnode data, Coinbase and Binance showed similar trends from the beginning of 2021 until the end of 2023, maintaining average withdrawal prices around $22,500 by November 2023. However, a significant discrepancy emerged in November 2023 amid speculations about a potential approval of a Bitcoin ETF. Binance’s outflow price stabilized at $24,180, while Coinbase maintained a higher level at $30,740 as of April 2024. This indicates that the surge in Bitcoin prices was primarily driven by activity on Coinbase due to speculation and increased demand.
Despite Bitfinex and Kraken having the lowest outflow cost-basis totals at $11,800 and $18,900, respectively, the overall average across all exchanges stands at $20,500. This suggests that the rally in Bitcoin prices was mainly propelled by activities on Coinbase.
Realized Price Cohorts by Year
All realized price cohorts by year currently show profits. The 2024 cohort holds an average cost basis of $56,200, indicating a gain of over 10% from current price levels. This could potentially serve as a significant support level if Bitcoin were to drop below the psychological $60,000 price mark. Moreover, the 2023 cohort has surpassed buyers from the previous bull run in 2021, boasting a cost basis of $38,855 compared to $38,000, respectively.
It is evident from the data that the 2024 cohort has experienced considerable profit margins, suggesting a strong market support level for Bitcoin. This information can be crucial for investors and traders looking to gauge the market sentiment and potential price movements in the near future.
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