Bitcoin News Today: Digital Gold Reimagined: Bitcoin's $75K+ Cost Basis Majority

As of October 2025, more than one-third of the circulating Bitcoin supply-approximately 34.5%-is held with a cost basis exceeding $75,000, according to analysis by The Bitcoin Checkpoint Report. This figure includes 11.5% of Bitcoin (690,000 coins) acquired at prices above $110,000, reflecting unprecedented capital inflows during the recent price cycle. The data underscores a shift in market dynamics, with institutional and corporate investors driving demand through products like spot Bitcoin ETFs and treasury allocations.

The report highlights that 70% of the stored value in Bitcoin is concentrated at or above these high-price entry points, despite the circulating supply being only partially owned by long-term holders. This clustering indicates a maturation of the market, where Bitcoin is increasingly viewed as a strategic asset rather than a speculative vehicle. The average investor's unrealized profit stands at 230% against their cost basis, with total realized capital crossing $1 trillion-a metric that reflects sustained institutional confidence.

Institutional adoption has been a key driver. BlackRock's iShares Bitcoin Trust (IBIT), launched in early 2024, has accelerated this trend. By October 2025, IBIT had attracted $3.5 billion in weekly inflows during the first week of October, outpacing traditional S&P 500 ETFs and contributing to Bitcoin's surge past $126,000. The ETF's rapid growth-nearing $100 billion in assets under management in less than 450 days-has normalized Bitcoin's inclusion in institutional portfolios, with major corporations and sovereign entities allocating capital to the asset class.

Market structure has also evolved. The "chopsolidation" phase-prolonged sideways price movements-has been tempered by reduced volatility, with realized volatility stabilizing between 35 and 60 since 2023, compared to prior cycles' peaks. This is attributed to sophisticated volatility capture strategies employed by institutional players, who scale in during liquidity shocks and anchor price floors. The result is a market where Bitcoin's role as a "digital gold" store of value is increasingly validated, with long-term holders prioritizing capital preservation over short-term trading.

Tax implications for investors have shifted under new IRS rules effective 2025. Cost basis is now calculated on a wallet-by-wallet basis, requiring taxpayers to strategically select accounting methods (FIFO, HIFO, LIFO) to minimize capital gains. For example, selling Bitcoin from a Coinbase account with a $20,000 cost basis versus a KuCoin account with a $100,000 basis could result in gains differing by $50,000 under HIFO. Taxpayers are advised to notify exchanges of their preferred method by January 1, 2025, to optimize outcomes.

Looking ahead, the interplay between ETF-driven demand and Bitcoin's programmed scarcity could amplify price momentum. Institutional purchases in 2025 have outpaced new supply by a 7.4:1 ratio, creating a "supply shock" narrative. Analysts project Bitcoin could reach $135,000–$199,000 by year-end 2025, with potential for $200,000 by early 2026 if inflows continue. Regulatory clarity, including the SEC's proactive approach and the anticipated approval of Ethereum and Solana ETFs, is expected to further normalize digital assets in traditional finance.

Source: [1] Bitcoin News: Over One-Third of Supply Now Has a Cost Basis Above $75K (https://www.thecoinrepublic.com/2025/10/09/bitcoin-news-over-one-third-of-supply-now-has-a-cost-basis-above-75k/) [2] 2025 Crypto Basis Rules: How to Minimize Capital Gains (https://cryptotaxcpa.com/2025-crypto-basis-rules-how-to-minimize-capital-gains/) [3] BlackRock's Bitcoin ETF (IBIT) Shatters Records with $3.5B Inflows (https://markets.financialcontent.com/stocks/article/breakingcrypto-2025-10-8-blackrocks-bitcoin-etf-ibit-shatters-records-with-35b-inflows-outperforming-s-and-p-500-giants?CSSURL=36.htm)