Unprecedented Shift in Crypto Holdings: Institutional Interest Favors Ethereum Over Bitcoin
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2 min read
Title: Ethereum Long-Term Holders Increase to 75% in 2024, Bitcoin Numbers Decline
In a surprising turn of events, the crypto market has witnessed a significant shift in long-term holder behavior. A recent analysis has revealed that the proportion of long-term Ether (ETH) holders has increased to 75% as of December 2024, whereas the same metric for Bitcoin (BTC) holders declined from 70% to 62% over the same period.
This trend suggests a marked shift in investor sentiment, with Ethereum attracting more institutional interest and solidifying its position as the preferred asset. The surge in long-term Ether holders can be attributed to the growing confidence in ETH’s potential, fueled by the looming regulatory changes and technological advancements expected in 2025.
On the other hand, Bitcoin saw a decline in long-term holder numbers, potentially linked to sales triggered by market volatility. This correction was partly attributed to some investors deciding to liquidate their positions during a period of heightened market euphoria. In December, Bitcoin experienced significant price fluctuations, with prices reaching an all-time high before plummeting to $93,000 within just two weeks.
The data reveals that Ethereum’s stability in holder behavior has garnered greater attention from institutional investors, who are increasingly turning to the asset. This shift is also reflected in ETFs, as net inflows into ETH-based funds doubled in December, reaching a staggering $2.1 billion.
Experts believe that 2025 will be a pivotal year for Ethereum, with the possible incorporation of staking into ETH ETFs, regulatory changes led by the Commodity Futures Trading Commission (CFTC), and a restructuring of the Securities and Exchange Commission’s approach. These developments hint at a significant shift in investor preferences within the crypto market.
In conclusion, this data highlights a crucial change in the behavior of long-term investors, favoring Ethereum over Bitcoin. As we move into 2025, it is essential to track these trends closely to better understand the evolution of the cryptocurrency landscape.
Source: crypto-economy.com
