Bitcoin price reverses gains on New Year’s Eve; hodlers continue stacking sats

Bitcoin
(BTC)
and
the
broader
cryptocurrency
market
turned
lower
later
in
the
day
on
Dec.
31,
erasing

intraday
gains

to
cap
off
a
highly
successful
year
on
a
weaker
note. 

Market
Update

BTC
price
fell
below
$46,000
on
Dec.
31
and
was
last
seen
hovering
below
that
level,
according
to
data
from

Cointelegraph
Markets
Pro

and

TradingView
.
The
flagship
cryptocurrency
is
down
over
5%
from
its
intraday
peak
and
2.9%
on
the
day
to
trade
at
$45,933. 


Bitcoin’s
price
is
back
on
the
defensive
as
the
year
draws
to
a
close.
Source:
Cointelegraph
Markets
Pro

Altcoins
faced
a
similar
downward
trajectory
as
Bitcoin,
with
the
likes
of
Ether
(ETH),
Binance
Coin
(BNB)
and
Solana’s SOL each
falling
more
than
2%.
Cardano’s

ADA

declined
over
4%
on
the
day.

The
combined
market
capitalization
of
all
cryptocurrencies
shed
over
$100
billion
from
its
intraday
peak,

falling

from
a
high
of
$2.4
trillion
to
$2.27
trillion,
according
to
CoinGecko.


The
crypto
market
cap
was
down
more
than
$100
billion
from
its
intraday
peak.
Source:
CoinGecko

The
sudden
reversal
followed
a
modest
relief
rally
for
BTC
and
other
cryptocurrencies
that
took
place
early
on
Dec.
31.
As
Cointelegraph
reported,

Bitcoin’s
price
appreciated
by
more
than
$1,500

in
less
than
an
hour

a
rally
that
may
have
been
aided
by
a
December
options
expiry
event
worth
roughly
$6
billion.



Related:




Price
analysis
12/31:
BTC,
ETH,
BNB,
SOL,
ADA,
XRP,
LUNA,
AVAX,
DOT,
DOGE

Crypto
OGs
keep
on
accumulating

Bitcoin
is
bracing
for
a
year-to-date
return
of
less
than
60%,
which
is
well
below
what
many,
if
not
most,
prognosticators
were
calling
for
at
the
start
of
2021.
Although
BTC
never
came
close
to
achieving
lofty
six-figure
valuations,
the
leading
cryptocurrency
continues
to
attract
investors
with
a
low
time
preference.
(Investors
with
a
low
time
preference
place
more
emphasis
on
their
financial
well-being
in
the
far
future
as
opposed
to
the
present.)

BTC’s
recent
price
correction
has
been
largely
driven
by
so-called
crypto
tourists
who
entered
the
market
in
the
summer.
As
Cointelegraph
recently
reported,
veteran
holders
are
still

selling
record-low
amounts
of
BTC

as
of
late
December.
Meanwhile,

buying
activity
on
Coinbase

appears
to
have
picked
up
substantially
toward
the
end
of
the
year. 

Earlier
this
week,
UTXO
Management
analyst
Dylan
LeClair
said
“The
true
OGs
are
holding
tight,”
in
reference
to
Bitcoin’s
long-term
holders
having
a
much
lower
on-chain
cost
basis
than
those
who
are
currently
selling.
The
average
on-chain
cost
basis
for
long-term
BTC
holders
is
$17,825
compared
with
$33,890
for
those
currently
spending
their
coins.



Related:




Top
5
bullish
Bitcoin
stories
of
2021

In
addition
to
the
retail-oriented
class
of
long-term
hodlers,
the
crypto
market
saw
an
influx
of
sophisticated
institutional
investors
in
2021.
Net
proceeds
into
crypto
funds
exceeded
$9.3
billion
in
2021,
with
Bitcoin
accounting
for
over
two-thirds
of
that
total,
according
to
CoinShares
data.
These
funds
registered
16
consecutive
weeks
of
inflows
through
Dec.
13.

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