Bitcoin Tops $38K as Coinbase Stock Soars Amid Bull Market

By: Isha Das

Bitcoin's meteoric rise continues unabated, charting an impressive 133% uplift year-to-date (YTD) and crossing the $38,000 threshold. Investor behavior indicates strong conviction in the bull market, exemplified by the robust growth in Bitcoin's realized price values. The Realized Price offers a macroscopic perspective of the average price for each Bitcoin last spent, thus representing purchasing rates for circulating coins.

Detailed examination using Short-Term Holder (STH) and Long-Term Holder (LTH) metrics reveal fascinating insights regarding investor conduct. STH Realized Price denotes the average price of Bitcoins transacted within the past 155 days excluding those held in exchange reserves. These Bitcoins are more inclined to be spent, presently possess a cost basis of $31,500 – a YTD peak. On the other hand, with a decreasing likelihood of spending, LTH Realized Price, corresponding to Bitcoins unmovable in the last 155 days, documents a cost basis of $20,848.

In a significant development, realized price has surpassed the LTH realized price. This suggests a higher aggregate cost basis established by coins changing ownership, reinforcing the bull market's continuing vigor.

Simultaneously, Coinbase Global (COIN)'s shares have been flourishing, marking a 250% increase in 2023 and outperforming both Bitcoin and Ethereum. Coinbase's recent meteoric rise to an 18-month high of approximately $115 can be attributed to its surging trading volumes. The fourth quarter's trading volumes have already exceeded the third quarter's, even before December's conclusion.

USDC stablecoin's recovering market cap and the growing adoption of Ethereum's layer 2 network Base, incubated by Coinbase, are also credited for influencing Coinbase's valuation. The downfall of its major competitor, Binance, also offered tailwinds to Coinbase's growth.