Saudi Press

Saudi Arabia and the world
Thursday, Jul 10, 2025

Bitcoin ends its bang of a 2021 with a December whimper

Bitcoin ends its bang of a 2021 with a December whimper

Bitcoin ended a banner year with a rocky finish. The largest cryptocurrency by market value closed out December with a 19% drop, its largest monthly loss since May.
That was also its worst December since 2013. And its 60% advance in 2021 marked its smallest gain for an up year since 2015, when it climbed 36%. On Friday, the coin fell as much as 3.5% before rebounding somewhat to trade at about $46,300 in New York.

That Bitcoin had a breakout year, though, is now settled debate after the token and the wider crypto world spent 2021 pushing further into the mainstream and capturing more attention from finance professionals and the public at large. Those watching Bitcoin’s daily gyrations say all of it is par for the course - the coin is famous for its volatility and this year proved just as choppy as any other.

“We’re seeing a little more volatility,” Chris Gaffney, president of world markets at TIAA Bank, said in an interview. “It’s a speculative asset.”

Bitcoin started 2021 with a bang, quickly notching new highs as more investors - especially big-name Wall Street institutions - became interested in it as a speculative asset or as a hedge against rising prices. Other positive developments, including the launch of the first US exchange-traded fund tracking Bitcoin futures, also helped propel it higher over the year. Globally, more than $20bn was invested in crypto exchange-traded products through November, a record, according to ETFGI, a research and consultancy firm. Assets increased roughly 550% year to date, up from $3.1bn at the end of last year, the firm said in a report.

“What lifted Bitcoin above $20,000 was this excitement factor that, it’s not just a bunch of kids. It’s real. Institutions are going to make strategic allocations in Bitcoin because it’s a limited supply, it’s only going to go higher,’” said Michael Purves, chief executive and founder of Tallbacken Capital Advisors. “The next stage of this sort of maturity of Bitcoin is going to require something more than that.”

Bitcoin has had a rough time since hitting an all-time high of near $69,000 in early November. Partly, analysts say, it’s being buffeted by concerns over greater regulatory scrutiny around the world. But it’s also losing dominance to other lesser-known upstarts that have gained in popularity as the crypto ecosystem expanded this year. Among the biggest cryptocurrencies, Binance Coin posted the best return, adding roughly 1,300% in 2021.

Matt Maley, chief market strategist for Miller Tabak + Co, says Bitcoin’s year-end volatility might be a result of investors jettisoning non-winning trades.

“Institutional investors like to pump up their large holdings at the end of the year and scale back (or in some cases, dump) their losers,” he wrote in a note this week. “Well, guess what? A lot of institutional players were late to the game on Bitcoin and other cryptos this year.”

Bitcoin’s gains for the year remain impressive, and it isn’t faring as poorly as it has during past drawdowns. Its 30% drop from its high is not as drastic as other swoons it’s experienced. The average decline from a record sits at around 46%, according Bespoke Investment Group. Bitcoin’s mid-year pullback was even worse, with the coin down more than 50% at its low.

Looking ahead, many investors - in classic “crypto-to-the-moon” fashion - are expecting prices to recover and eventually reach new highs. The wild swings in the market suggest it could go either way.

“We expect Bitcoin to continue to perform well. Tailwinds include sustained inflation and broader investor adoption from continued education as well as the broader macro environment,” wrote Martin Gaspar and Katherine Webb at CrossTower Research. “Investors are increasingly understanding the unique value-add of Bitcoin. As long as it continues humming, we believe the price will follow.”
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
×