As the year 2024 comes to a close, it’s clear that the crypto market is showing signs of shifting sentiment towards major assets. One key indicator of this shift is the growing number of long-term holders for Ethereum (ETH), while the number of Bitcoin (BTC) holders has seen a steady decline.
Long-Term Holders: A Metric of Market Sentiment
IntoTheBlock, a platform that provides insights into market trends and sentiment, has been tracking the percentage of long-term holders for both ETH and BTC. According to their data, the total percentage of Ether holders who had held their tokens for the long haul had risen from 59% in January to 75% by the end of 2024.
A Shift Towards Long-Term Holding for Ethereum
The number of long-term Bitcoin holders, on the other hand, has witnessed a steady decline from about 70% to 62% in the same timeframe. As of December 30th, the proportion of long-term Bitcoin holders stood at 62.3%, while the proportion of long-term Ethereum holders was at 75.1%.
What Does This Mean for Market Sentiment?
IntoTheBlock has previously described long-term holders as those holding an asset for more than a year. While this metric is one of many that investors can look at to gauge market sentiment towards major crypto assets, a continued shift towards long-term holding for ETH also suggests growing confidence in the asset heading into 2025.
Ethereum Maxi’s Bullish Outlook
Ger Van Lagen, a technical analyst, has been vocal about his bullish outlook on BTC. In a December 17th post to X, he suggested that Bitcoin’s price was "blowing off," with BTC later dropping from an all-time high of $106,000 to $93,000 between December 16th and 30th.
Van Lagen’s Take on the Market
Van Lagen attributed this move to long-term holders cashing out amid a period of euphoria. He maintained a distinctly bullish outlook on BTC, predicting that the asset was on track to surpass $200,000 in the near future.
Growing Confidence in Ethereum
In contrast, inflows into spot Ether ETFs have doubled in the last month, surging from $1 billion in net inflows in November to $2.1 billion worth of cumulative net inflows in December. This trend suggests that investors are becoming increasingly confident in ETH’s prospects.
Experts Weigh In on a Trump Administration
Several experts from different sectors of the crypto industry have suggested that a Trump administration would prove beneficial to ETH, particularly. They cited a wave of new developments as a reason for taking a bullish stance on ETH heading into 2025, ranging from:
- The demise of ‘financial nihilism’: A shift away from a mindset that views traditional financial institutions with skepticism.
- A complete overhaul of the SEC: Changes to regulatory bodies that govern crypto assets.
- The addition of staking to Ether ETFs: New features being added to investment products that track ETH’s performance.
- Increased regulatory oversight from the CFTC: Greater scrutiny and guidance from regulatory bodies on crypto markets.
Is Ethereum Poised for a Comeback?
As we head into 2025, it’s clear that the market is showing signs of shifting sentiment towards major assets. The growing number of long-term holders for ETH suggests growing confidence in the asset’s prospects.
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