The Bitcoin (CRYPTO: BTC) price is right about where it was this time yesterday.
At the time of writing the world's top token by market cap is trading for US$21,144 (AU$30,711). That's down 54% this calendar year and down a painful 68% from the 10 November record high.
But potentially of more concern to crypto investors, the Bitcoin price has now slipped below its realised price.
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What is the realised Bitcoin price and why does it matter?
Blockchain data analytics firm Glassnode tracks the average price of all Bitcoin in virtual circulation, an indicator called the realised price.
Currently, the realised Bitcoin price stands at US$23,430, almost 10% above today's price. And with the majority of holders now underwater, the leading crypto could come under new selling pressure.
According to strategist at Glassnode (courtesy of Bloomberg):
The current bear market is now entering a phase aligned with the deepest and darkest phases of previous bears. The market, on average, is barely above its cost basis, and even long-term holders are now being purged from the holder base.
Brian Nick, chief investment strategist at global investment manager Nuveen, cautioned investors about the big potential moves in the Bitcoin price.
"Bitcoin trades like a penny stock. There's all kinds of reason to think that once it starts falling quickly, it can continue to fall. If it can move 20% in two days, it can move another 20% the next two days," he said.
Why are crypto markets under pressure?
It's not just the Bitcoin price that's down sharply this year.
The entire crypto-sphere has come under selling pressure.
That's largely been due to interest rates heading higher across much of the globe for the first time in a decade. With expectations of significantly more rate hikes to come, investors have been lightening their holdings of risk assets, like high growth tech shares and cryptos.
The Bitcoin price and cryptos more broadly have also been impacted by news that crypto lender Celsius Network has halted withdrawals this week. Investors fear that Celsius may not be able to make good on all of its high yielding products.
