Asus
- Average Aussie Bitcoin investor now up 72%
- Only the unlucky few who bought Bitcoin in March, April, October or November 2021 are nursing losses
- Record fast inflows into Bitcoin ETFs have seen Aussie Gen Xs, Millennials and Gen Zs flood back into the market
A majority of Australia’s 3.5m Bitcoin investors are finally back in profit after the approval last month of crypto exchange traded funds in the US, according to analysis by one of the country’s largest exchanges.
Bitcoin hit an all-time high of USD $69,000 (AUD $105,000) in 2021 before falling to just USD $16,000 (AUD $24,000) in the depths of the crypto winter after the collapse of Bahamas-based exchange, FTX.
The market wash-out left millions of Aussie Bitcoin investors nursing steep losses. But a recent rally has seen the price of Bitcoin fly past the average break-even price for local investors, according to new research by Australian crypto exchange Swyftx.
Lead market analyst at Swyftx, Pav Hundal, said:
The magic number for Aussie Bitcoin investors is USD $39,780. If Bitcoin drops below that price, a majority of the local market is statistically likely to be under water with their investments. Anything above it and most investors are in profit.
Pav Hundal
Swyftx described the USD $39,780 (AUD $60,879) figure as a weighted average based on total trading among Australians and monthly bitcoin prices over the last five years.
Bitcoin price rise brings Aussie investors into profit
The exchange’s research suggests a typical bitcoin investor in Australia is currently around 72pc in profit. But investors who bought bitcoin at the top of the market in the months of March, April, October or November 2021 are nursing losses of up to 25% at current prices.
Hundal said:
The approval of Bitcoin ETFs in the US has upended the market. Inflows into the ETFs have been significant and demand for Bitcoin is currently estimated at 12 times the level of mining of new bitcoins.
It is an extraordinary situation. However, it is important to say there is still significant volatility and there is the possibility bitcoin could drop below that average break-even $40k point again.
A lot of Aussies bought Bitcoin in those crucial four months of 2021 and they’ll be sitting on unrealised losses. There’s still ground for the market to claw back before this cohort is back in the black.
Pav Hundal
Bitcoin ETF inflows hit new records
The verdict is out. Wall Street LOVES #Bitcoin
Proof: There’s been over 5500 ETF launches in history.
NEVER before has an ETF reached $3 Billion AUM in less than 30 days… until now.
Both Blackrock and Fidelity’s Bitcoin spot ETFs have just done it.$IBIT $FBTC pic.twitter.com/K7myEvonH7
— Mark Wlosinski (@LTI_finance) February 12, 2024
Bitcoin has surged over the last month after the US Securities and Exchange Commission approved the trading of Bitcoin exchange-traded funds (ETFs) last month.
The move makes it easier for retail and business investors to access cryptocurrency through traditional stock markets. According to Bloomberg, the Bitcoin ETFs launched by asset managers Blackrock and Fidelity are now the fastest-growing newly launched ETFs of all time.
Hundal said that the ETF launches had coincided with a 100% increase in Millennial and Gen X registrations on the Swyftx platform compared to the previous quarter.