Changes in Long-Term Holders of Ethereum and Bitcoin in 2024
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In 2024, the proportion of long-term holders of Ethereum (ETH) and Bitcoin (BTC) has undergone significant changes, indicating a shift in investor preference between the two. This change is particularly evident in the second half of 2024, especially against the backdrop of a substantial increase in the proportion of long-term holders of Ethereum.
Growth of Long-Term Holders of Ethereum
According to a report by IntoTheBlock, the proportion of long-term holders of Ethereum rose from 59% in January to 75% in 2024, indicating that more investors have a long-term optimistic view towards Ethereum. The increase in the proportion of long-term holders may be due to bullish expectations for Ethereum's future, especially with the ETH 2.0 upgrade and the widespread adoption of decentralized finance (DeFi) and enterprise applications, Ethereum is seen as a growth engine for the future.
Decline in Proportion of Long-Term Holders of Bitcoin
In contrast, the proportion of long-term holders of Bitcoin has declined from 70% in January to 62%. This change suggests that some Bitcoin investors opted to take profits in 2024, particularly after Bitcoin's price reached a historical high of $108,268. As Bitcoin's price corrected and market uncertainty increased, many long-term holders transferred their Bitcoin to exchanges, leading to a decrease in the proportion of long-term holders of Bitcoin.
Bitcoin Price Correction and Market Sentiment
After reaching a historical high, Bitcoin's price has undergone a significant correction, currently trading around $93,680, and is struggling to maintain above the key support level of $95,000. Although renowned traders like Peter Brandt have pointed out that Bitcoin might form a head and shoulders pattern, which could lead to a drop to $78,000, the market remains optimistic about Bitcoin's long-term prospects, especially as it enters 2025, where Bitcoin may continue to benefit from institutional demand and potential policy support.
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