Bitcoin (BTC) and the broader cryptocurrency market fell at the end of the day on December 31, ending a very successful year on a weaker note, ending the day’s gains.
According to Cointelegraph Markets Pro and TradingView, BTC dropped below $ 46,000 on Dec 31 and fell below that level for the last time. The flagship cryptocurrency fell more than 5% from its daily peak and rose 2.9% to $ 45,933 per day.
Bitcoin price is on the defensive again towards the end of the year. Source: Cointelegraph Markets Pro
Altcoins have faced the same downward trend as Bitcoin, with Ether (ETH), Binance Coin (BNB) and Solana’s SOL falling more than 2%, for example. Cardano’s ADA is up more than 4% on the day.
According to CoinGecko, the combined market capitalization of all cryptocurrencies fell from a daily peak of over $ 100 billion to a high of $ 2.4 trillion and to $ 2.27 trillion.
The market capitalization of the cryptocurrency is more than $ 100 billion below its daily peak. Source: CoinGecko
After a moderate rally for the suddenly backed BTC and other cryptocurrencies that started on December 31st. As reported by Cointelegraph, the price of bitcoin surged to over $ 1,500 in less than an hour – a rally that could have gone through the December options. The shelf life is about $ 6 billion.
Topic: Price Analysis 31.12: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGE
Crypto OG continues to grow
Bitcoin’s annual return is less than 60%, which is less than what many, if not most, forecasters were demanding in early 2021. However, BTC never came close to double digits. A well-known cryptocurrency doesn’t really matter for attracting investors. (Investors focus more on low-priority priorities for their financial well-being in the distant future than on the present.)
The latest BTC price correction was largely driven by the so-called crypto tourists who entered the market this summer. Cointelegraph recently reported that veteran holders are still selling record low amounts of BTC at the end of December. In addition, by the end of the year, buying activity on Coinbase seems to have increased significantly.
Earlier this week, UTXO management analyst Dylan Leclair said that “the real OGs are consolidating,” which means that long-term bitcoin holders are much less dependent on the internal network than they are selling now. The average base chain cost for long-term BTC holders is $ 17,825, compared to $ 33,890 for those currently spending their money.
In addition to the retail-focused segment of long-term holders, the crypto market saw an influx of seasoned institutional investors in 2021. In 2021, the net revenue of crypto funds will exceed $ 9.3 billion, two-thirds of this amount comes from Bitcoin. General Chat Chat Lounge according to CoinShares. These funds recorded return on investment for 13 consecutive weeks until December 16th.