As we bid farewell to 2024 and welcome the new year, a significant trend has emerged in the cryptocurrency market. The number of long-term Ether (ETH) holders has steadily increased throughout the past year, while the number of Bitcoin (BTC) holders has fallen. This shift in market sentiment is a testament to growing confidence in Ethereum heading into 2025.
Long-Term Holders: A Metric for Market Sentiment
According to data from IntoTheBlock, a leading platform for crypto analytics, the total percentage of Ether holders who had held their tokens for the long haul rose from 59% in January 2024 to 75% by the end of the year. This represents a significant increase of 16 percentage points.
Decline of Long-Term Bitcoin Holders
In contrast, the number of long-term Bitcoin holders witnessed a steady decline over the same period. From around 70% in January 2024, it dropped to approximately 62% by December. As of December 30, the proportion of long-term Bitcoin holders stood at 62.3%, while that of long-term Ethereum holders was at 75.1%.
Defining Long-Term Holders
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 use to gauge market sentiment toward major crypto assets.
Growing Confidence in ETH
A continued shift toward long-term holding for Ether suggests growing confidence in the asset heading into 2025. As we explore further, various experts from different sectors of the crypto industry have cited several developments as bullish indicators for Ethereum.
The Trump Administration: A Boon for ETH?
Several experts believe that a Trump administration will be beneficial to Ethereum, particularly. They cite several new developments as reasons to take a bullish stance on ETH heading into 2025.
- Demise of ‘Financial Nihilism’: With a new administration in place, there is hope for an end to the "financial nihilism" that has plagued the crypto market.
- Overhaul of the SEC: The Securities and Exchange Commission (SEC) will likely undergo significant changes, providing more favorable conditions for Ethereum growth.
- Addition of Staking to Ether ETFs: With staking now available in some Ether ETFs, investors have more ways to engage with ETH.
- Increased Regulatory Oversight from the CFTC: The Commodity Futures Trading Commission (CFTC) will provide more regulatory clarity and oversight, which is a positive sign for Ethereum.
Inflows into Spot Ether ETFs: A Surge in Interest
Another indicator of growing confidence in Ethereum is the significant increase in inflows into spot Ether ETFs. In November 2024, there were $1 billion worth of net inflows, while in December, this number surged to a cumulative $2.1 billion.
Conclusion
The rise of long-term Ether holders and the decline of long-term Bitcoin holders are clear signs that market sentiment is shifting toward Ethereum heading into 2025. With various experts from different sectors of the crypto industry citing new developments as bullish indicators for ETH, it’s likely that this trend will continue in the coming year.
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