The price of Bitcoin cancels out the gains on New Year’s Eve; the hodlers keep stacking sats

Bitcoin (BTC) and the broader cryptocurrency market fell later today on December 31, erasing intraday gains to cap a highly successful year on a lower note.

Market update

The price of BTC fell below $ 46,000 on December 31 and was last seen below that level, according to data from Cointelegraph Markets Pro and TradingView. The flagship cryptocurrency is down more than 5% from its intraday peak and 2.9% on the day to trade at $ 45,933.

Altcoins have seen a similar downward trajectory to Bitcoin, with commodities like Ether (ETH), Binance Coin (BNB), and Solana’s SOL each falling more than 2%. Cardano’s ADA fell more than 4% on the day.

The combined market cap of all cryptocurrencies has lost more than $ 100 billion from its intraday peak, rising from a high of $ 2.4 trillion to $ 2.27 trillion, according to CoinGecko.

The sudden reversal followed a modest rally of relief for BTC and other cryptocurrencies that took place early on December 31. As Cointelegraph reported, the price of Bitcoin appreciated by over $ 1,500 in less than an hour – a rally that may have been helped by a December option. expiration event valued at approximately $ 6 billion.

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

Crypto OG keep piling up

Bitcoin is bracing for a year-to-date return of less than 60%, which is well below what many, if not most, tipsters were clamoring for in early 2021. Although BTC has never been close to To reach high six-digit valuations, the leading cryptocurrency continues to attract investors with low time preference. (Investors with a low time preference place more emphasis on their financial well-being in the distant future than in the present.)

The recent correction in BTC prices was largely driven by the so-called crypto tourists who entered the market in the summer. As Cointelegraph recently reported, veteran holders were still selling record amounts of BTC at the end of December. Meanwhile, buying activity on Coinbase appears to have increased significantly towards the end of the year.

Earlier this week, UTXO Management analyst Dylan LeClair said that “real OGs hold up,” in reference to long-term Bitcoin holders with a much lower base cost than those currently selling. The average base cost of the chain for long-term BTC holders is $ 17,825, compared to $ 33,890 for those who are currently spending their coins.

#Bitcoin long-term holders have an average chain base cost of $ 17,825, but those currently spending their coins have a base cost of $ 33,890.

Real OGs hold out. pic.twitter.com/VtxuAcZzUw

– Dylan LeClair (@DylanLeClair_) December 30, 2021

Related: Top 5 Bitcoin Bullish Stories of 2021

In addition to the long-term retail-oriented hodler class, the crypto market saw an influx of sophisticated institutional investors in 2021. Net proceeds from crypto funds topped $ 9.3 billion in 2021, with Bitcoin accounting for more than two-thirds of that total, according to data from CoinShares. These funds recorded 16 consecutive weeks of influx until December 13.