eth-usd

Arslan Butt•Monday, December 30, 2024•2 min read

2024 was a big year for long term holding trends among crypto investors. According to the percentage of long term Ethereum holders went from 59% in January to 75% by the end of the year.

Bitcoin on the other hand went down, long term holders went from 70% to 62% over the same period.

Long term holders are considered the life blood of the market. More Ethereum holders means more confidence in the market. More Ethereum holders as we enter 2025 with staking enabled ETFs and regulatory clarity.

BTC/USD

Bitcoin Sees Decline in Confidence

Despite hitting an all time high of $106,000 earlier in December Bitcoin long term holders are declining. By December 30th the number was 62.3% down from 70% at the beginning of the year. This decline coincided with a correction in the price which fell to $93,000 by the end of the month.

According to technical analyst Ger Van Lagen this decline in long term holding is due to profit taking during a period of extreme euphoria. Van Lagen is still bullish on Bitcoin and expects it to go above $200,000 in the next year despite short term sell offs.

Key reasons cited for the drop in Bitcoin’s long-term holder base include:

• Profit-taking after all-time highs in December.

• Diversification into Ethereum and other crypto assets.

• Market uncertainty fueled by global economic pressures.

ETH/USD

Spot Ether ETFs See Record Inflows

Ethereum long term holders were further boosted by institutional interest. Spot Ether ETFs saw $2.1 billion in inflows in December, double November’s $1 billion. Analysts say it’s a combination of staking enabled ETFs and Ethereum’s growing utility in DeFi and beyond.

The optimism around Ethereum also matches the expectations of a crypto friendly regulatory environment under the Trump administration. Here are some of the developments that will boost Ethereum:

• A revamped SEC fostering innovation in blockchain.

• Increased regulatory oversight from the Commodity Futures Trading Commission (CFTC).

• The demise of “financial nihilism” as mainstream adoption of cryptocurrencies accelerates.