Bitcoin's Average Acquisition Cost Hits Record High

Bitcoin's average acquisition cost reached an all-time high of $40,980 in 2024, according to ARK Invest's Big Ideas 2025 report. This marked an 86% increase from the previous year, totaling $811.7 billion. Some investors view this aggregate cost metric as an indicator of Bitcoin's long-term fair value and a potential support level during future bear markets.

Analysts, including Adam Back, co-founder of Blockstream, suggest that Bitcoin's "floor price" has already surpassed the $40,000 mark. The 200-week moving average, a popular technical indicator, reached $43,983 on Feb. 11, with Bitcoin trading above $95,740. This key indicator crossed the $40,000 psychological mark on Oct. 18, 2024.

In the short term, Bitcoin's price remains sensitive to economic indicators. The upcoming US Consumer Price Index (CPI) data release on Feb. 12 could shape crypto investor sentiment for the following weeks. Additionally, Japan's January PPI, Germany's January inflation data, and a suite of UK indicators will offer further clues to the market's direction. Despite recent volatility, BTC remained resilient above the $95,000 mark on Feb. 9, demonstrating its strength amidst geopolitical tensions.