Bitcoin and the broader crypto market initially trailed behind global financial markets after the Christmas holiday. However, the story shifted following the New Year’s holiday, with altcoins leading a significant rally. On Friday, January 2nd, Bitcoin itself surged past the key psychological level of $90,000.
Despite this move, recent on-chain data suggests investors should temper their excitement about Bitcoin’s recent price action.
### Bitcoin Price Must Surpass the STH Average Cost at $99,000
In a January 2nd post on X, crypto analyst Burak Kesmeci noted that Bitcoin’s recent price jump doesn’t reveal much about the current market structure. His analysis is based on the Short-Term Holder (STH) Realized Price, which currently sits around $99,000.
For context, the Short-Term Holder Realized Price is an on-chain metric that tracks the average price at which investors who have held Bitcoin for less than 115 days acquired their coins. As the average cost basis for this reactive group of investors, it often acts as a dynamic level of support and resistance.
While Bitcoin’s price has dipped below this level four times in the past year, it has remained below this critical threshold since September 2025. According to Kesmeci, Bitcoin needs to close above this STH Realized Price of $99,000 before discussions of a bull run can resume.
Kesmeci wrote on X: “No bull market without the short-term investor with a broken heart being made happy.”
This statement highlights the importance of short-term investors in market dynamics. Breaking above the Short-Term Holder Realized Price would signal a return of demand and confidence among this key investor group.
### Data Converges Between $99,000 and $102,000
Kesmeci further pointed out that additional on-chain data reinforces the critical importance of the $99,000 region for Bitcoin’s price trajectory. He stated that significant data is converging in the $99,000 to $102,000 range, and until this zone is surpassed, Bitcoin’s price may continue to face challenges.
In an earlier post on X, Kesmeci revealed that Bitcoin needs to close above $101,000 for the long-term trend to turn positive. This explains his conclusion that the $99,000 to $102,000 range is pivotal for Bitcoin’s market health.
As of this writing, the price of Bitcoin is approximately $90,110, reflecting a gain of about 2% over the past 24 hours.
Frequently Asked Questions
Frequently Asked Questions About Bitcoins Surge Past 90000
Beginner Questions
What does it mean that Bitcoin surged past 90000
It means the price of one Bitcoin rose above 90000 USD for the first time marking a significant new high in its market value
Why is this happening now after the holidays
Markets often see increased activity after holiday periods as traders return This postholiday rally can be driven by renewed investment positive news or broader economic factors that boost investor confidence
Is Bitcoin a good investment
Bitcoin is a highly volatile and speculative asset While some see it as a potential store of value or investment its price can swing dramatically Its not suitable for everyone and you should never invest money you cant afford to lose
How can I buy Bitcoin
You can buy Bitcoin through regulated cryptocurrency exchanges by creating an account verifying your identity and linking a payment method
What does caution is advised mean
Its a warning that while the price rise is notable Bitcoin remains risky Prices can drop just as quickly as they rise and the market is influenced by speculation regulation and global events
Intermediate Questions
What typically causes a Bitcoin price surge
Surges can be caused by a combination of factors increased institutional investment positive regulatory news broader adoption market cycles or macroeconomic conditions that drive people toward alternative assets
What is a rally in financial terms
A rally is a period of sustained increases in the prices of stocks bonds or commodities within a financial market
Are there risks to buying Bitcoin at such a high price
Yes Buying at an alltime high carries the risk of a pullback or correction where the price falls significantly This is often called buying the top Historical patterns dont guarantee future performance
How does this surge compare to previous ones
Each surge has different drivers The 2021 bull run was heavily influenced by retail investor frenzy and stimulus checks The current market sees more institutional participation and the emergence of Bitcoin ETFs which may create a different dynamic