Autor Cointelegraph By Sam Bourgi

Bitcoin (BTC) and the broader cryptocurrency market turned lower later in the day on Dec. 31, erasing intraday gains to cap off a highly successful year on a weaker note. Market UpdateBTC price fell below $46,000 on Dec. 31 and was last seen hovering below that level, according to data from Cointelegraph Markets Pro and TradingView. The flagship cryptocurrency is down over 5% from its intraday peak and 2.9% on the day to trade at $45,933. Bitcoin’s price is back on the defensive as the year draws to a close. Source: Cointelegraph Markets ProAltcoins faced a similar downward trajectory as Bitcoin, with the likes of Ether (ETH), Binance Coin (BNB) and Solana’s SOL each falling more than 2%. Cardano’s ADA declined over 4% on the day. The combined market capitalization of all cryptocurrencies shed over $100 billion from its intraday peak, falling from a high of $2.4 trillion to $2.27 trillion, according to CoinGecko.The crypto market cap was down more than $100 billion from its intraday peak. Source: CoinGeckoThe sudden reversal followed a modest relief rally for BTC and other cryptocurrencies that took place early on Dec. 31. As Cointelegraph reported, Bitcoin’s price appreciated by more than $1,500 in less than an hour — a rally that may have been aided by a December options expiry event worth roughly $6 billion. Related: Price analysis 12/31: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGECrypto OGs keep on accumulating Bitcoin is bracing for a year-to-date return of less than 60%, which is well below what many, if not most, prognosticators were calling for at the start of 2021. Although BTC never came close to achieving lofty six-figure valuations, the leading cryptocurrency continues to attract investors with a low time preference. (Investors with a low time preference place more emphasis on their financial well-being in the far future as opposed to the present.)BTC’s recent price correction has been largely driven by so-called crypto tourists who entered the market in the summer. As Cointelegraph recently reported, veteran holders are still selling record-low amounts of BTC as of late December. Meanwhile, buying activity on Coinbase appears to have picked up substantially toward the end of the year. Earlier this week, UTXO Management analyst Dylan LeClair said “The true OGs are holding tight,” in reference to Bitcoin’s long-term holders having a much lower on-chain cost basis than those who are currently selling. The average on-chain cost basis for long-term BTC holders is $17,825 compared with $33,890 for those currently spending their coins. #Bitcoin long-term holders have an average on-chain cost basis of $17,825, but the ones currently moving spending their coins have a cost basis of $33,890.The true OGs are holding tight. pic.twitter.com/VtxuAcZzUw— Dylan LeClair (@DylanLeClair_) December 30, 2021Related: Top 5 bullish Bitcoin stories of 2021In addition to the retail-oriented class of long-term hodlers, the crypto market saw an influx of sophisticated institutional investors in 2021. Net proceeds into crypto funds exceeded $9.3 billion in 2021, with Bitcoin accounting for over two-thirds of that total, according to CoinShares data. These funds registered 16 consecutive weeks of inflows through Dec. 13.

From a price perspective, the cryptocurrency market is ending 2021 with a whimper as Bitcoin (BTC), Ether (ETH) and other digital assets continue to trade well below their prior peaks. But the business of blockchain and crypto is heating up, as evidenced by the arrival of institutional capital and the flood of venture funding into the space. According to Nischal Shetty, CEO of India’s WazirX crypto exchange, the digital asset revolution is already underway and will continue with or without your participation. Below is the concise version of the latest “Crypto Biz” newsletter, which is delivered to your inbox every Thursday. Register for the full newsletter below to receive comprehensive insights every week.Crypto won’t wait for nations to come on board: WazirX CEOWith crypto being thrust into mainstream consciousness in 2021, lawmakers around the world are scrambling to regulate the digital asset class. WazirX’s Nischal Shetty believes nation-states will soon be in an arms race to develop and launch local versions of central bank digital currencies, or CBDCs. “We’re optimistic that we’ll get regulatory clarity and see institutional participation fuel retail adoption,” he said. “There is a $2.5-trillion market out there, and it is not going to wait for any nation to come on board.” FTX wants to intice banks to start accepting stablecoinsCryptocurrency derivatives exchange FTX is prepared to offer banks $1 million in prize money to begin accepting stablecoins. The offer, which was floated in a Tuesday Twitter post, is intended to strengthen FTX’s ties with traditional finance to help its customers better facilitate “near-instant and near-free deposits and withdrawals through stablecoins.” Although the offer is no doubt intriguing, banks are unlikely to commit to supporting stablecoins until federal regulators chime in on the matter. How much would it cost to convince a bank to accept stablecoins? If we offered a $1m prize for the first bank in each region that does it is that enough?Do you work for a bank and want to discuss this?— FTX – Built By Traders, For Traders (@FTX_Official) December 28, 2021DeBank valued at $200M following private equity roundThis week’s biggest funding news came courtesy of DeBank, a cryptocurrency wallet focused on decentralized finance solutions. On Tuesday, the firm announced it had completed a $25 million private equity round that was led by Sequoia China with additional participation from Dragonfly, Hash Global and Youbi, among several others. DeBank is now valued at $200 million, highlighting once again that DeFi-focused startups were attracting significant interest from venture capitalists. Related: Kevin O’Leary says his crypto holdings could reach 20% of portfolioBinance pursues regulatory approvals in Bahrain and CanadaBinance is wrapping up a highly tumultuous year on a positive note after the cryptocurrency exchange announced it had received a pair of licensing approvals from Bahrain and Canada. The green light from Bahrain gives the exchange license to operate as a crypto service provider in the tiny Gulf state. In Canada, however, the picture is a bit murkier. While Binance claims that it is licensed to operate in the country after incorporating a subsidiary called Binance Canada Capital Market, Ontario’s securities regulator issued a statement Thursday that the exchange is “not registered under securities law” in the province. (It should be noted that Binance’s subsidiary registered as a federal corporation whereas the Ontario Securities Commission has jurisdiction over the province of Ontario.) As Cointelegraph reported, Binance was effectively kicked out of Ontario, Canada’s most populous province, in June after local regulators began clamping down on unregistered trading platforms.