Throughout 2024, the number of long-term Ethereum (ETH) holders has seen a steady increase, while long-term Bitcoin (BTC) holders have experienced a decline. Data indicates that the proportion of Ethereum investors holding onto their assets for more than a year grew from 59% in January to 75% by year’s end. In contrast, Bitcoin’s long-term holders dropped from around 70% to 62% within the same period.
This trend points towards a growing confidence in Ethereum as we head into 2025. Long-term holders, defined as those maintaining possession of their assets for over a year, serve as a key metric for understanding investor sentiment toward these major cryptocurrencies.
Technical analyst Ger Van Lagen noted a reduction in Bitcoin’s price from an all-time high of $106,000 to $93,000, attributing this mainly to long-term stakeholders cashing out. Despite this downturn, he maintains a bullish outlook on Bitcoin, predicting its price could exceed $200,000 soon.
In December, investments in spot Ether ETFs doubled, surging from $1 billion in November to $2.1 billion. Many industry experts align this positive sentiment with potential policy shifts under a potential Trump administration, which they believe could be favorable for Ethereum. Expected changes include the end of “financial nihilism,” a revamp of the SEC, the introduction of staking to Ether ETFs, and increased regulatory oversight from the CFTC. These developments are suggested as key reasons for the optimistic outlook on Ethereum as we move into 2025.
