As 2024 concluded, a noticeable change emerged in the market sentiments surrounding Ethereum (ETH) and Bitcoin (BTC). Long-term holders of Ethereum saw a significant increase in their ranks, while Bitcoin holders experienced a decline. Data indicates that the percentage of Ether holders who maintained their investment for over a year rose from 59% at the beginning of the year to 75% by its end. In contrast, the proportion of long-term Bitcoin holders decreased, moving from approximately 70% down to 62% during the same period.
By the end of December, the statistics revealed that 62.31% of Bitcoin holders had held their assets for the long term, as opposed to 75.06% for Ethereum . Long-term holders are generally defined as those who retain their investments for more than a year. This trend toward increased long-term holding of ETH not only reflects a shift in market sentiment but also indicates growing confidence in Ethereum as an asset heading into 2025.
In December, Bitcoin experienced a significant price correction, dropping from an all-time high of $106,000 to $93,000. Analysts suggested that this decline was primarily driven by long-term holders opting to cash out, potentially sparked by a wave of market euphoria. Despite the recent volatility, some experts remain bullish on Bitcoin ’s future, with predictions of it potentially surpassing $200,000.
The last month saw a remarkable surge in inflows into spot Ether ETFs, increasing from $1 billion in November to a total of $2.1 billion in December. This rising interest in Ethereum has been attributed to various factors, including potential regulatory changes and upcoming developments that may favor ETH. Analysts believe that these shifts signal a robust potential for Ethereum in the coming year, positioning it as a competitive player in the cryptocurrency landscape alongside established assets like Bitcoin .
