Crypto investors who bought Bitcoin (BTC) in 2024 saw an average return of 40%, according to a measurement known as the “realized price.”
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While a 40% return is impressive, it is less than half the 110% gain seen in Bitcoin over the course of last year. Bitcoin began 2024 trading at $44,000 and finished the year on Dec. 31 at $92,382. However, Bitcoin did hit an all-time high of around $110,000 in November of last year.
The realized price is the average value of all Bitcoin calculated at the price at which the token last moved on-chain. While that value is around $41,000 for Bitcoin since its inception in 2009, for coins bought last year it is $65,901.
Unrealized Profits
This means that Bitcoin buyers in 2024, on average, are sitting on an unrealized profit of 40%. Bitcoin would have to decline 31% for last year’s investors to return to break-even price levels. Bitcoin is currently trading at $101,000 per digital token. It remains the largest cryptocurrency by market capitalization.
Bitcoin has enjoyed a big run since president-elect Donald Trump won the U.S. election on November 5. Trump campaigned on promises to bring forward crypto-friendly legislation and to create a strategic BTC reserve for the United States.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 58% in the last 12 weeks, which is a very strong gain.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
