Bitcoin price dipped below $46,000 after seeing highs of $48,500 earlier in the day

Bitcoin price and the broader crypto market dipped late December 31, erasing intraday gains to cap a successful year on a weaker note. It dipped below $46,000 yesterday and was last seen oscillating below that level. The top cryptocurrency is down more than 5% from the intraday high and 2.9% on the day to trade at $45,933. At the time of writing, BTC is changing hands at $46,810.

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BTC/USD 4-hour chart | Source: TradingView

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

Bitcoin price was trading above $46,300 at 11:59 PM UTC on December 31, 2021 — up 58% on the year — making 2021 one of Bitcoin’s weakest years in recent memory. BTC closed above $46,300 today at 11:59 p.m. UTC, marking a 58.14% gain for the cryptocurrency throughout the year.

That growth is significantly lower than what has been seen in previous years. At the end of 2020, Bitcoin closed with a gain of 309%. At the end of 2019, it closed with an increase of 86%, and at the end of 2017, Bitcoin closed with a gain of 1,244 %.

However, Bitcoin has performed better this year than in years that depreciated, such as 2018 (-71%) and 2014 (-59%). It also performed better than 2015, when it posted a moderate gain of 38%. However, Bitcoin’s relatively low 56.75% gain this year makes 2021 one of the weakest years for Bitcoin in recent history.

“Bitcoin’s Network Realized Profit/Loss is a fantastic way to gauge when traders are in pain, and the network is trading a significant gain or loss. Ever since the December 3rd dump, there have been significant dips in and (just) out of the buy zone”, Santiment stated.

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Source: Santiment

A variety of factors can cause a coin’s poor performance. Despite hitting a new all-time high this year, the Bitcoin price has dropped at various points. In May, Tesla reversed its decision to allow crypto payments while China blocked the use of cryptocurrencies. Those events may have contributed to the loss that followed.

Bitcoin also suffered significant losses at the end of November, largely due to concerns surrounding the Omicron variant of COVID-19. This year, Bitcoin’s relatively weak performance has provided an opportunity for several other altcoins to shine with rapid price increases.

Solana (SOL), a major Ethereum competitor, is up 9,179% this year, placing it in the top five coins by market capitalization. Decentraland (MANA) is up 3,823%. As a virtual land token, its growth can be attributed to the hype surrounding the Metaverse created by Facebook and other companies in October.

Dogecoin (DOGE) also saw significant gains, as its price increased by 2906% for the year. The cryptocurrency’s rise began in April when GameStop’s takeover game drew attention to the coin as a “meme” investment.

Bitcoin’s closest competitor, Ethereum (ETH), is up 406%, with slow but steady growth throughout the year. Other coins with significant price gains this year include Binance Coin (BNB) at 1255%, Enjin (ENJ) at 1812%, Crypto.com (CRO) at 841%, Cardano (ADA) at 650%, and Uniswap (UNI) at 262%.

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