Bitcoin Long-Term Holders Shift to Ethereum, ETH Price ATH Soon?

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market shifts and trends. The data presented here is quite intriguing, showing a clear preference for Ethereum (ETH) among long-term investors, while Bitcoin (BTC) seems to be losing some of its appeal.

The rise in Ethereum long-term holders from 59% to 75%, coupled with the decline in Bitcoin long-term holders, suggests that investors are increasingly bullish on ETH’s potential price rally in 2025. However, it’s important to remember that while trends can provide valuable insights, they should not be the sole basis for investment decisions.

The recent correction in Bitcoin from its all-time high of $108K could be due to profit-taking by long-term holders and increased deposits to exchanges. This is a common phenomenon in bull markets and doesn’t necessarily indicate a bearish trend for BTC moving into 2025.

As for Ethereum, its underperformance against Bitcoin in 2024 might be temporary. The ongoing attempt to establish a higher low against BTC, as suggested by analyst Daan Crypto Trades, could signal a potential trend reversal. If the 0.04 BTC level is broken, it could reduce Bitcoin dominance and trigger a broader rally in altcoins.

The surge in inflows into Ether ETFs over the past month and the potential benefits of Ethereum under the Trump administration are further indicators of its growing popularity. However, as always, investing in cryptocurrencies comes with inherent risks, so it’s crucial to do thorough research and manage your investments wisely.

And now, for a little humor to lighten the mood: I remember when Bitcoin was just a footnote in a whitepaper and Ethereum was just a game! Times have certainly changed, haven’t they?

2024 saw an upward trend in the number of long-term Ethereum holders, contrasting with a decrease in Bitcoin holders. This suggests a growing interest in Ethereum over Bitcoin as investors anticipate a strong ETH price rise in 2025. The data indicates lower volatility and a smaller market cap for Ethereum compared to Bitcoin, which could imply a more stable investment environment for Ethereum in the coming year.

According to IntoTheBlock’s analysis, the percentage of long-term Ethereum investors increased significantly, from 59% in January to 75% by the end of 2024. Conversely, the percentage of long-term Bitcoin holders decreased from 70% to 62% over the same period. By December 30, long-term holders accounted for about 62.3% of Bitcoin ownership, while Ethereum’s long-term holder ratio was approximately 75.06%.

Source: IntoTheBlock

For over a month now, owners who have held Bitcoin for an extended period have been actively selling their Bitcoin, leading to a significant increase in deposits to cryptocurrency exchanges. This action has caused a steep drop in Bitcoin’s price from its record high of $108,000 and it’s currently finding it difficult to stay above the crucial support level of $95,000.

2025 looks optimistic for Bitcoin’s bull run, according to crypto market analysts, but it must surpass the $100K resistance level initially. In the immediate future, however, Bitcoin seems bearish due to Peter Brandt’s prediction of a head-and-shoulders pattern that could potentially drive its price down to around $78,000.

As a seasoned trader with over a decade of experience under my belt, I have seen countless market patterns come and go. However, the head and shoulders top pattern is one that has consistently caught my attention due to its predictive power. Currently, the chart I’m analyzing presents this very pattern, and based on my past observations, it could potentially take the price to $78,000. But let me be clear, it’s not a guarantee; market movements can be unpredictable, and things might fail with a thrust higher or morph into something else entirely. Nevertheless, I believe it’s essential to treat this pattern as what it is – a head and shoulders top – and take the necessary precautions accordingly.

— Peter Brandt (@PeterLBrandt) December 29, 2024

ETH Price Surge, Will Ethereum Outperform Bitcoin in 2025?

In the year 2024, Ethereum has been trailing behind Bitcoin in terms of performance, while Bitcoin and other alternative cryptocurrencies have achieved new peak prices. On the other hand, Ethereum’s price hasn’t been able to exceed $4,000. However, there is a positive outlook for Ethereum, as analysts anticipate that it will surpass Bitcoin in performance during 2025.

As a researcher delving into the realm of cryptocurrencies, I’m focusing on the persistent effort by Ethereum (ETH) to create a higher bottom relative to Bitcoin (BTC). This persistence hints at a potential shift in trend on larger timeframes, indicating a possible reversal.

Based on our examination, if Bitcoin falls below the significant 0.04 BTC threshold, it could signal a reversal trend, decreasing Bitcoin’s dominance (BTC.D) and possibly sparking a more extensive surge in alternative cryptocurrencies. Traditionally, the Ethereum-Bitcoin pair (ETH/BTC) has shown strong performance during the first quarter, lending support to the positive forecast.

Source: Daan Crypto Trades

Over the past month, I’ve noticed a substantial increase in investments flowing into Ether Exchange-Traded Funds (ETFs), with net inflows doubling from $1 billion in November to $2.1 billion by December. Experts from diverse sectors within the crypto industry are optimistic that Ethereum (ETH) could particularly prosper under the Trump administration’s policies.

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2024-12-30 12:21