Bitcoin price bounced with gains to start a bullish new year

Bitcoin price has seen 2021 as its most turbulent but bullish year. The asset witnessed an exciting roller coaster ride last year. However, the year closed with good gains. Although last year, the flagship cryptocurrency saw mainstream adoption and several new all time highs, the price slipped from its last ATH to below $46k. Following the scenario, leading altcoins price also dipped significantly. On Friday, BTC and other crypto assets turned lower later in the day after erasing intraday gains to cap off a highly successful year on a weaker note.

This year crypto market faced negative momentum

According to data from TradingView, at the end of 2021, the Bitcoin price fell below the level of $46k. At the time, the flagship crypto was down by more than 5% from its intraday peak and 2.9% on the day to trade at the level of $45,933.

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Simultaneously, while observing the overall market we found that Altcoins faced some similar downtrend trajectory as the flagship crypto con. Notably, Ethereum, Binance Coin, and Solana each fall by more than 2%. In contrast, Cardano plunged by more than 4% over the similar period.

Besides, the combined market capitalization of the industry also dropped by more than $100 billion from its intraday peak. According to data from CoinMarketCap, the global crypto market capitalization fell from $2.4 trillion to $2.27 trillion.

Bitcoin price remained bullish this New Year

Suddenly, the bullish rally reversed following a modest relief for Bitcoin and other crypto assets that took place this year end. According to experts, the leading cryptocurrency appreciated by more than $1500 in less than an hour. Indeed, such a rally has been aided by aDecember options expiry event worth roughly $6 billion.

BTC OGs are still accumulating

Analysts note that BTC price has braced for a year-to-date return of less than 60% which is well below what many prognosticators were calling for at the beginning of last year. Although the coin designed by Satoshi Nakamoto never came close to achieving lofty six-figure valuations, it continues to attract more investors with a low time preference.

Bitcoin price correction that we witnessed recently has been largely driven by so-called crypto tourists who entered the market last summer. According to analysts, veteran holders are still selling record-low amounts of Bitcoin as of late December.

Besides, buying activity on Coinbase appears to have picked up substantially toward the end of this year.