Analysts at the Brisbane-based crypto exchange, Swyftx, have identified the ‘magic’ breakeven number for Australian Bitcoin investors. They have estimated $39,780 to be the average price at which local Bitcoin investors are either making a profit or suffering a loss. This breakeven price means that if Bitcoin drops below that value, a majority of Australian investors will likely be experiencing losses, but if it rises above that line, most investors are anticipated to gain profit.
Bitcoin, colloquially referred to as ‘digital gold’, has recently seen a surge in its price following ETF approval and a month before the historically significant Bitcoin Halving event. The breakeven price of $39,780 presented by the Swyftx analysts is a weighted estimate. It considers the behaviour of Australian Bitcoin traders on the Swyftx platform and takes into account the average monthly Bitcoin prices over the past five years.
The analysts show that a typical Bitcoin investor in Australia is currently earning about a 30% profit. Nevertheless, there are still Australian investors who purchased Bitcoin during crypto’s bullish phase in March, April, October, or November 2021, who are still dealing with losses as high as 34%. Bitcoin’s price plummeted to just US$16,000 or AU$24,400, following FTX’s infamous collapse in November 2022.
Furthermore, the report also identifies a rise in Gen X and millennial crypto investors who are seeing Bitcoin as an ‘opportunistic trade’. However, Pav Hundal, lead market analyst at Swyftx, cautions that many Australians are bearing unrealised losses. Four record-breaking months in 2021 for Australians buying Bitcoin also align with the only months where the average Bitcoin price remains in the red, highlighting the volatility and risk associated with cryptocurrency market.
In conclusion, while many Australian Bitcoin investors are seeing profits thanks to Bitcoin’s recent price rally, there is ground to make up for those who bought Bitcoin during its peak in 2021. The ‘magic’ breakeven price of Bitcoin for Australian investors is $39,780, and Bitcoin’s climb or fall from this point indicates the general profit or loss trend for local investors.
