Coinspeaker

30 December 2024

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Long-Term Ethereum Holders Rise to 75% as Bitcoin Declines to 62%

In 2024, the number of long-term Ethereum holders increased while long-term Bitcoin holders decreased, indicating a shift in preference from Bitcoin to Ethereum ahead of a potential ETH price rally in 2025.

Long-Term Holder Trends

According to blockchain analytics platform IntoTheBlock, the percentage of long-term Ethereum investors rose from 59% in January to 75% by year-end. Conversely, long-term Bitcoin holders fell from 70% to 62%. As of December 30, long-term holders represented 62.3% of Bitcoin ownership, while Ethereum's long-term holder proportion was 75.06%.

Bitcoin Market Dynamics

Since mid-December, long-term Bitcoin holders have engaged in significant profit-booking, depositing substantial amounts of BTC to exchanges. Consequently, Bitcoin's price corrected from its all-time high of $108K, struggling to maintain support above $95,000.

Market analysts remain optimistic about Bitcoin's future, though it must convincingly surpass the $100K resistance to reach new highs. Currently, BTC shows bearish tendencies as trader Peter Brandt notes a head-and-shoulders pattern that could lead Bitcoin down to $78,000.

This is a head and shoulders top pattern. It might complete and take price to $78,000; it might fail with a thrust higher: or, it might morph into something else. But as it stands right now, it is a head and shoulders top and must be chartist dealt with for what it is. pic.twitter.com/b9AUUO7ddL

— Peter Brandt (@PeterLBrandt) December 29, 2024

Ethereum's Potential Outperformance

During 2024, Ethereum underperformed compared to Bitcoin, which reached new all-time highs, while ETH struggled to exceed $4,000. Despite this, analysts expect Ethereum will outperform Bitcoin in 2025.

Crypto analyst Daan Crypto Trades indicates that Ethereum is attempting to establish a higher low against Bitcoin, signaling a potential trend reversal on higher timeframes. A break above the crucial 0.04 BTC level would confirm this reversal, potentially leading to reduced Bitcoin dominance and a broader altcoin rally. Historical performance of the ETH/BTC pair during Q1 further supports this optimistic outlook.

In the past month, spot Ether ETFs experienced a notable increase in inflows, rising from $1 billion in November to $2.1 billion by December. Industry experts suggest that policies from the Trump administration could particularly benefit Ethereum.