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

Bitcoin (Bitcoin) And the broader cryptocurrency market went lower late in the day on December 31, erasing Intraday income A very successful year ended with a weaker note.

Market dynamics

According to data from BTC, the price of BTC fell below US$46,000 on December 31, and it hovered below this level for the last time. Cointelegraph Markets Pro and Transaction view. The flagship cryptocurrency fell more than 5% from its intraday peak, down 2.9% on the day, and the transaction price was US$45,933.

As the end of the year approaches, the price of Bitcoin is back on the defensive. Source: Cointelegraph Markets Pro

Altcoins face a downward trajectory similar to Bitcoin, such as Ethereum (Ethereum), Binance Coin (Bitcoin) And Solana’s Sol Both fell more than 2%.Cardano have The drop was more than 4% that day.

The total market value of all cryptocurrencies fell by more than 100 billion U.S. dollars from their intraday peak, come down According to CoinGecko’s data, it dropped from a high of US$2.4 trillion to US$2.27 trillion.

The market value of cryptocurrencies fell by more than $100 billion from their intraday peak. Source: CoinGecko

After the mild rebound of BTC and other cryptocurrencies that occurred earlier on December 31, it suddenly reversed. As Cointelegraph reported, Bitcoin price rises by more than $1,500 In less than an hour-this rebound may have benefited from the expiration event of December options worth about $6 billion.

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

Encrypted OG continues to accumulate

Bitcoin’s year-to-date return rate is less than 60%, which is far below the level that many (if not most) forecasters demanded in early 2021. Although BTC has never come close to achieving a high six-figure valuation, the leading cryptocurrency continues to attract investors with lower time preferences. (Compared with the present, investors with lower time preference pay more attention to their financial situation in the distant future.)

The recent price adjustment of BTC is mainly driven by the so-called cryptocurrency tourists entering the market in the summer.As Cointelegraph recently reported, senior holders still Sell ​​a record amount of BTC As of the end of December. at the same time, Purchase activity on Coinbase It seems to have rebounded sharply towards the end of the year.

Earlier this week, UTXO Management analyst Dylan LeClair stated that “the real OG is holding tight,” referring to the fact that long-term Bitcoin holders have 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 US$17,825, while the average on-chain cost for people who currently use Bitcoin is US$33,890.

related: 5 bullish Bitcoin stories in 2021

In addition to the category of long-term holders for retail, the cryptocurrency market will also be flooded with a large number of mature institutional investors in 2021. In 2021, the net income of cryptocurrency funds exceeded 9.3 billion U.S. dollars, of which Bitcoin accounted for more than two-thirds of the total, according to CoinShares data. As of December 13, these funds had flowed in for 16 consecutive weeks.