As we enter a new year, the cryptocurrency market is experiencing significant changes in investor behavior. A recent report from IntoTheBlock has revealed that the number of long-term holders of Ether (ETH) has increased steadily throughout 2024, while the number of long-term holders of Bitcoin (BTC) has fallen over the same period.
Long-Term Holders: What Does it Mean?
According to IntoTheBlock, a long-term holder is defined as an investor who holds an asset for more than one year. This metric provides valuable insights into market sentiment and can help investors gauge the confidence levels of major crypto assets.
Ethereum’s Rising Long-Term Holders
As of December 30th, the total percentage of ETH holders who have held their tokens for the long haul has risen from 59% in January to a staggering 75% by the end of 2024. This significant increase suggests growing confidence in the asset heading into 2025.
Bitcoin’s Declining Long-Term Holders
In contrast, the number of long-term BTC holders has witnessed a steady decline from around 70% to 62% over the same timeframe. As of December 30th, the proportion of long-term Bitcoin holders stood at 62.3%, while the proportion of long-term Ethereum holders was at an impressive 75.1%.
IntoTheBlock’s Insights
In a previous report, IntoTheBlock described long-term holders as those who hold an asset for more than a year. This metric is one of many that investors can use to gauge market sentiment toward major crypto assets. The continued shift towards long-term holding for ETH also suggests growing confidence in the asset heading into 2025.
Technical Analyst’s Outlook
In a December 17th post to X, technical analyst Ger Van La Gena suggested that Bitcoin’s price was "blowing off," with BTC later dropping from an all-time high of $106,000 to $93,000 between December 16th and December 30th. However, Van La Gena maintained a distinctly bullish outlook on BTC, predicting the asset would surpass $200,000 in the near future.
Spot Ether ETF Inflows Surge
In a recent development, inflows into spot Ether ETFs have doubled, surging from $1 billion in net inflows in November to $2.1 billion worth of cumulative net inflows in December. This significant increase in investor interest is a positive sign for the Ethereum market.
Expert Insights: Trump Administration and ETH
Several experts from different sectors of the crypto industry have stated that a Trump administration will prove beneficial to Ether, particularly. They cited various developments as reasons for taking a bullish stance on ETH heading into 2025:
- Demise of ‘Financial Nihilism’: The end of an era marked by regulatory uncertainty and financial nihilism could lead to increased confidence in the crypto market.
- Overhaul of the SEC: A complete overhaul of the Securities and Exchange Commission (SEC) could bring about a more favorable regulatory environment for Ethereum.
- Addition of Staking to Ether ETFs: The addition of staking to Ether ETFs could increase investor interest and confidence in the asset.
- Increased Regulatory Oversight from CFTC: Increased regulatory oversight from the Commodity Futures Trading Commission (CFTC) could bring about greater stability and security to the Ethereum market.
Conclusion
The cryptocurrency market is constantly evolving, with investor behavior and market sentiment playing a significant role. The increasing number of long-term Ether holders and the declining number of long-term Bitcoin holders suggest growing confidence in ETH heading into 2025. As we navigate this new year, it will be essential to keep a close eye on these trends and developments.
Related Articles
- Why Ethereum Maxi’s Say ETH Will Be The ‘Comeback Kid’ Of 2025
- Comeback 2025 — Is Ethereum Poised To Catch Up With Bitcoin And Solana?
Subscribe to the Finance Redefined Newsletter
Stay ahead of the curve with our weekly toolkit, which breaks down the latest DeFi developments, offers sharp analysis, and uncovers new financial opportunities. Delivered every Friday.
By subscribing, you agree to our Terms of Service and Privacy Policy.
