As 2024 draws to a close, a striking trend has emerged in the crypto market: long-term confidence in Ethereum (ETH) is growing, while Bitcoin (BTC) seems to be losing its grip on dedicated holders. Data reveals that 75.1% of Ether holders have retained their tokens for over a year, a major leap from 59% at the start of the year.
In stark contrast, Bitcoin’s long-term holder proportion has declined steadily, dropping from 70% in January to 62.3% by year-end. This divergence highlights a shift in sentiment within the cryptocurrency space, as ETH continues to strengthen its foothold among investors.
Analysts suggest that this growing confidence in ETH stems from its versatility and evolving use cases, bolstered by consistent ecosystem developments and the integration of staking into Ether exchange-traded funds (ETFs).
Bitcoin Holders Cash Out Amid Price Volatility
Bitcoin’s struggles in retaining long-term holders were further accentuated by its turbulent price movement in December. BTC’s value tumbled from its all-time high of $106,000 on December 16 to $93,000 by December 30. According to technical analyst Ger Van Lagen, this sharp decline was fueled by long-term holders capitalizing on the euphoric price spike.
While Van Lagen remains optimistic, forecasting Bitcoin to surpass $200,000 in the coming months, the current metrics paint a picture of waning patience among BTC loyalists. This change in behavior raises questions about Bitcoin’s resilience amid growing competition from Ethereum and other blockchain ecosystems.
Spotlight on Ether ETFs
The rise in Ether’s long-term holder base isn’t occurring in isolation. December alone saw inflows into spot Ether ETFs more than double, with net investments climbing from $1 billion in November to $2.1 billion by month-end. These inflows signal robust institutional interest in ETH, especially with developments such as staking integration and increased regulatory clarity under the Commodity Futures Trading Commission (CFTC).
With the cryptocurrency market entering 2025, Ethereum’s steady growth and adoption position it as a compelling asset for long-term investors. Meanwhile, Bitcoin faces the challenge of retaining its dominance as confidence appears to shift, albeit temporarily, toward its closest competitor.
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