Cryptocurrency Market Trends: ETH Long-Term Holders Increase, Bitcoin Numbers Decline
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Ethereum Long-Term Holders Increase to 75% in 2024, Bitcoin Numbers Decline
A significant trend has emerged in the cryptocurrency market as we approach the end of 2024. The data shows a stark contrast between Ethereum (ETH) and Bitcoin (BTC) long-term holders. According to recent reports, the proportion of long-term ETH holders has consistently increased throughout the year, reaching an impressive 75% by December.
On the other hand, the number of Bitcoin long-term holders experienced a decline, dropping from 70% in January to 62% in December. This drastic shift highlights a growing trend where investors are increasingly favoring Ethereum over Bitcoin.
It is essential to note that the rise of long-term ETH holders coincides with the increasing adoption of Ethereum-based assets and its integration into mainstream financial products like exchange-traded funds (ETFs). In December, net inflows into ETH ETFs doubled, reaching $2.1 billion. This influx of institutional investment has solidified Ethereum’s position as a preferred asset in the crypto market.
The recent shift may be attributed to the token’s stability and its ability to integrate with other financial systems. The growing use of staking on the Ethereum network, for instance, has attracted long-term investors seeking stable returns. Additionally, regulatory changes and technological advancements could potentially reshape the crypto landscape in 2025.
In contrast, the decline in Bitcoin long-term holders may be linked to market volatility and investor concerns regarding price fluctuations. The significant correction experienced by Bitcoin in December, with prices dropping from $106,000 to $93,000 within two weeks, may have triggered panic sales among investors. This could have led to a decrease in the number of long-term holders.
The data provides an invaluable insight into the crypto market’s shifting trends and investor sentiment. As we look forward to 2025, it appears that Ethereum has solidified its position as a top choice for institutional investors. The trend may continue if regulatory changes and technological advancements materialize, further solidifying Ethereum’s potential growth trajectory.
Sources:
* Grayscale Research: Top 20 Crypto Assets
* Crypto Economy
Please note that the above text is based on the provided data and should be used for informational purposes only
Source: crypto-economy.com
