This article shows a significant shift in the behavior of cryptocurrency investors, particularly between Ethereum (ETH) and Bitcoin (BTC) in 2024. Here are some key points:
Increased confidence in Ethereum (ETH):
• Growth in long-term holder ratio (LTH):
The long-term holding ratio of ETH increased from 59% in January 2024 to 75% at the end of the year, according to data from IntoTheBlock. This reflects growing confidence in Ethereum in the long term.
• Cash flow into Ethereum ETF:
In December, Ethereum spot ETF funds recorded a net inflow of $2.1 billion, double that of November. This is a strong sign of growing interest from institutional investors.
Relative decline in confidence in Bitcoin (BTC):
• Long-term holder ratio decreases:
During the same period, the long-term holder ratio of Bitcoin decreased from 70% to 62%, reflecting the withdrawal of some long-term investors.
• Bitcoin price correction:
Bitcoin fell from its all-time high of $106,000 to $94,000 in mid-December, possibly due to profit-taking by long-term holders.
• Optimistic forecast:
Despite some corrections, experts like Ger Van Lagen still believe that BTC price could reach $200,000 in the future, indicating high expectations about the growth potential of this asset.
Factors driving Ethereum:
• Confidence in the ecosystem:
Updates on technology, the addition of staking to the Ethereum ETF, and tighter regulatory oversight measures from agencies like the CFTC have created strong confidence for ETH investors.
• Positive market sentiment:
The 'collapse of financial nihilism' and reforms at the SEC have also contributed to increasing optimism towards ETH, especially looking ahead to 2025.
Conclusion:
The shift from Bitcoin to Ethereum in 2024 is not just a numbers game, but it also reflects a change in the mindset and strategies of cryptocurrency investors. With strong supporting factors, ETH is gradually asserting its position in the digital financial ecosystem.