Long-term holding patterns in the cryptocurrency market have shown an unexpected shift in 2024, with Ethereum surpassing Bitcoin in retaining dedicated investors, according to data from IntoTheBlock (ITB).
While Bitcoin posted impressive gains of 122% compared to Ethereum's 48% over the past year, ETH demonstrated stronger staying power among long-term holders. The percentage of long-term ETH investors stabilized at 75.06%, while Bitcoin's long-term holder base declined to just over 62%.
This trend emerged despite Bitcoin reaching new all-time highs while Ethereum remained below its peak. Several factors appear to have bolstered investor confidence in ETH, including the approval of spot Ether ETFs and enhanced platform capabilities following the Dencun upgrade, which reduced transaction costs across Layer 2 solutions.
Ethereum advocate Anthony Sassano projects Ether ETF inflows could exceed $50 billion in 2025, pointing to growing institutional interest. The platform also gained political attention through President-elect Donald Trump's support of "World Liberty Financial," a DeFi platform built on Ethereum.
Meanwhile, Bitcoin markets showed signs of cooling, with the Crypto Fear & Greed Index dropping to 65 on December 30 - its lowest point since mid-October. This decline coincided with Bitcoin's 12% price correction to $93,000 over two weeks.
Despite recent market fluctuations, analyst James Williams suggests Bitcoin has entered an accumulation phase. He anticipates a consolidation period lasting several weeks before potential upward movement, projecting prices could reach $131,500 or higher by Q1 2025.
The contrasting holder behavior between the two leading cryptocurrencies highlights evolving market dynamics as both assets continue maturing in distinct ways.