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

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Bitcoin’s price has seen a reversal of gains from its weekly high due to the current market volatility. However, Bitcoin hodlers continue stacking sats at an unprecedented rate as prices remain relatively low in comparison to previous and future increases.Some analysts say that this trend may be just buyer fatigue setting in with less interest in crypto-related markets on New Year’s Eve.

Bitcoin’s price begins to swoon in the latter half of December, falling from its high of $19,000 at the beginning of October. The currency experienced a brief rally on New Years Eve, but then fell back down again as investors seemed to turn bearish for 2018.

The “sats bitcoin” is a cryptocurrency that has been on the rise in recent years. The price of Bitcoin reversed gains on New Year’s Eve, but hodlers continued stacking sats.

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

On Dec. 31, Bitcoin (BTC) and the larger cryptocurrency market fell later in the day, wiping out intraday gains and putting an end to a hugely successful year on a sour note. 

Update on the Market

According to statistics from Cointelegraph Markets Pro and TradingView, the price of bitcoin dipped below $46,000 on December 31 and was last observed hanging around that level. The flagship cryptocurrency is now trading at $45,933, down over 5% from its intraday high and 2.9 percent on the day. 

Bitcoin price reverses gains on New Year’s Eve; hodlers continue stacking satsAs the year comes to a close, Bitcoin’s price is once again on the defensive. Cointelegraph Markets Pro is the source of this information.

Altcoins followed Bitcoin’s downward trend, with the likes of Ether (ETH), Binance Coin (BNB), and Solana’s SOL all losing more than 2%. Cardano’s ADA fell more than 4% on the day.

According to CoinGecko, the total market value of all cryptocurrencies fell by almost $100 billion from its intraday high of $2.4 trillion to $2.27 trillion.

Bitcoin price reverses gains on New Year’s Eve; hodlers continue stacking satsThe market capitalization of cryptocurrencies was down more than $100 billion from its intraday high. CoinGecko is the source of this information.

The abrupt turnaround came after a brief relief rally for Bitcoin and other cryptocurrencies on Dec. 31. Bitcoin’s price increased by more than $1,500 in less than an hour, according to Cointelegraph, a rise that may have been assisted by a $6 billion options expiration event in December.

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

Crypto OGs continue to grow in number.

Bitcoin is expected to have a year-to-date return of less than 60%, which is considerably below the expectations of many, if not all, prognosticators at the start of 2021. Despite the fact that BTC has never approached six-figure prices, the top cryptocurrency continues to draw investors with a short time horizon. (Investors with a low time preference are more concerned with their financial well-being in the future than in the present.)

The so-called crypto tourists who joined the market in the summer are mostly to blame for BTC’s current price fall. Veteran holders are still selling record-low quantities of BTC as of late December, according to Cointelegraph. Meanwhile, Coinbase seems to have seen a significant increase in purchasing activity around the end of the year. 

“The genuine OGs are hanging tight,” remarked UTXO Management analyst Dylan LeClair earlier this week, referring to Bitcoin’s long-term holders having a far lower on-chain cost base than those who are now selling. Long-term BTC holders have an average on-chain cost basis of $17,825 compared to $33,890 for individuals who are presently using their coins.

Long-term holders of #Bitcoin have an average on-chain cost basis of $17,825, while those who are presently spending their coins have a cost basis of $33,890.

The actual pioneers are clinging to life. pic.twitter.com/VtxuAcZzUw

@DylanLeClair_ — Dylan LeClair (@DylanLeClair_) 30th of December, 2021

Top 5 bullish Bitcoin news articles for 2021

In 2021, the crypto market experienced an infusion of skilled institutional investors, in addition to the retail-oriented class of long-term hodlers. According to CoinShares statistics, net flows into crypto funds hit $9.3 billion in 2021, with Bitcoin accounting for over two-thirds of that sum. Through December 13, these funds have received inflows for 16 weeks in a row.

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Emilia James
By Emilia James

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