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Cryptocurrency

Ethereum Long-Term Holders Saw Increase in 2024 While Bitcoin Holder Numbers Declined

Horizonstocks

As the year 2024 came to a close, a significant trend emerged in the cryptocurrency market: an increasing number of long-term Ether (ETH) holders, coupled with a decline in the number of long-term Bitcoin (BTC) holders. This development is likely to impact the market dynamics heading into 2025.

Long-term Holders’ Percentage Increases for Ethereum and Decreases for Bitcoin

According to data from IntoTheBlock, shared on X on December 30, the total percentage of Ether holders who had held their tokens for the long haul rose from 59% in January to a staggering 75% by the end of 2024. This marks a significant increase in confidence among ETH investors.

On the other hand, the number of long-term Bitcoin holders witnessed a steady decline from approximately 70% to 62% in the same timeframe. As of December 30, 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%.

What is Considered Long-term Holding?

IntoTheBlock has previously described long-term holders as those holding an asset for more than a year. This metric provides valuable insights into market sentiment towards major crypto assets, allowing investors to gauge the confidence of investors in these assets.

A continued shift toward long-term holding for ETH suggests growing confidence in the asset heading into 2025. As we explore this trend further, it becomes clear that there are several factors contributing to this increase in confidence among long-term ETH holders.

Bitcoin’s Price and Long-term Holders

In a December 17 post to X, technical analyst Gert Van Lagen noted that Bitcoin’s price was "blowing off," with BTC later dropping from an all-time high of $106,000 to $93,000 between December 16 and December 30. This significant price drop may have been driven largely by long-term holders cashing out amid a period of euphoria.

Van Lagen suggested that this move was likely due to the fact that long-term holders were selling their BTC during a time of heightened market sentiment. Despite this, he maintained a distinctly bullish outlook on BTC, predicting that the asset would surpass $200,000 in the near future.

Increased Confidence in Ethereum ETFs

In the last month, 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 investment suggests that investors are increasingly confident in ETH’s potential.

Experts Predict a Bullish Year for Ethereum

Several experts from different sectors of the crypto industry believe that a Trump administration will prove beneficial to ETH, particularly given the following developments:

  • The demise of ‘financial nihilism’
  • A complete overhaul of the SEC
  • The addition of staking to Ether ETFs
  • Increased regulatory oversight from the Commodity Futures Trading Commission (CFTC)

These experts are taking a bullish stance on ETH heading into 2025, citing these developments as evidence that the asset is poised for significant growth.

Conclusion

The increasing number of long-term Ethereum holders and decreasing number of long-term Bitcoin holders suggest a growing confidence in ETH. As we head into 2025, it’s essential to consider the factors contributing to this trend, including increased investment in spot Ether ETFs and expert predictions of a bullish year for Ethereum.

As investors navigate the complex landscape of cryptocurrency markets, staying informed about these developments will be crucial in making smart decisions with confidence.

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  • Why Ethereum maxis say ETH will be the ‘comeback kid’ of 2025: This article explores the growing confidence among Ethereum investors and why they believe ETH is poised for significant growth.
  • Comeback 2025 — Is Ethereum poised to catch up with Bitcoin and Solana?: In this article, we delve into the possibility that Ethereum may surpass its competitors in terms of market value.

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