As the year 2024 comes to a close, there is an interesting trend emerging among long-term holders of two major cryptocurrencies: Ethereum (ETH) and Bitcoin (BTC). While the number of long-term Ethereum holders has been steadily increasing, the number of long-term Bitcoin holders has been declining. This shift in confidence is evident in various metrics, including the proportion of long-term holders, inflows into spot Ether ETFs, and expert predictions.
Long-Term Holders: A Growing Proportion
According to a recent post on X by IntoTheBlock, citing data from its platform, the total percentage of Ethereum holders who had held their tokens for the long haul had risen from 59% in January to 75% by the end of 2024. This significant increase indicates growing confidence among investors in ETH.
Source: IntoTheBlock
Meanwhile, the number of long-term Bitcoin holders witnessed a steady decline from about 70% to 62% in 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 75.1%.
Long-Term Holders: A Definition
IntoTheBlock has previously described long-term holders as those holding an asset for more than a year. This metric is one of many that investors can look at to gauge market sentiment toward major crypto assets.
Growing Confidence in Ethereum Heading into 2025
A continued shift toward long-term holding for ETH also suggests growing confidence in the asset heading into 2025. This trend is further reinforced by expert predictions and recent developments that are expected to benefit ETH.
Expert Predictions: A Bullish Outlook
In a December 17th post on X, technical analyst Ger Van Lagen 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 16 and December 30. Despite this move, Van Lagen maintained a distinctly bullish outlook on BTC, predicting the asset was on track to surpass $200,000 in the near future.
Source: Gert Van Lagen
Increased Inflows into Spot Ether 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.
A Trump Administration: A Boost for ETH?
Several experts from different sectors of the crypto industry said that a Trump administration would prove beneficial to ETH in particular. They cited several developments, including:
- 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, and their predictions are worth paying attention to.
Conclusion
The trend of long-term holders steadily increasing among Ethereum investors is an encouraging sign for the asset’s future prospects. With growing confidence in ETH, a shift away from short-term trading, and expert predictions pointing towards a bullish outlook, it will be exciting to see how 2025 unfolds for this popular cryptocurrency.
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