Bitcoin recovers above $61,900 as new investors show resilience

Bitcoin (CRYPTO:BTC) has regained its Short-Term Holder cost basis of $61,900 following the Federal Reserve's recent interest rate cut of 0.5%, according to Glassnode's latest analysis. 

Despite ongoing market consolidation, the report indicates that new investors are showing notable confidence in Bitcoin's long-term outlook. 

Glassnode's weekly on-chain report reveals that Bitcoin has surpassed both the Short-Term Holder cost basis and the 200-day moving average of $63,900. 

This rebound is attributed to the Fed's interest rate decision. 

Although new investors are facing unrealized losses, the report notes that these losses are significantly less severe compared to downturns experienced during past market crashes, such as in March 2020. 

Analysts, including Cryptovizart and Ukuria OC, highlight the resilience of new investors. 

They state, "New investors show a degree of resilience, seen in realized losses being of a relatively small magnitude, suggesting confidence in the overall uptrend." 

The report also addresses capital inflows and outflows, which are key indicators of market sentiment. 

It shows that despite recent price declines, the flow of capital remains moderately positive, especially among newer market participants. 

Additionally, the report indicates that the cost basis for younger Bitcoin holdings has started to decline at a slower rate compared to older holdings. 

"Despite many new investors being underwater on their holdings, the magnitude of their unrealized losses are notably less severe than the mid-2021 sell-off, and the March 2020 COVID crash," the analysts explain. 

Perpetual futures markets also reflect shifting investor sentiment, with a modest increase in long-biased leverage noted. 

However, the funding rate remains below levels seen in bull markets, indicating a cooling market during this correction. 

At the time of reporting, the Bitcoin price was $62,988.52.