In recent years, the crypto market has seen significant fluctuations in investor sentiment, particularly among long-term holders of major assets like Bitcoin (BTC) and Ethereum (ETH). According to a Dec. 30 post by IntoTheBlock on X, citing data from its platform, there has been a notable shift toward long-term holding for ETH heading into 2025.
Growing Confidence in Ether
As of December 30th, the total percentage of long-term ETH holders had risen from 59% in January to a staggering 75.1%. This represents a significant increase over the same timeframe for Bitcoin, where the number of long-term holders declined from about 70% to 62.3%.
Long-Term Holders: A Key Metric
IntoTheBlock has previously described long-term holders as those holding an asset for more than a year. While this metric is just one of many that investors can use to gauge market sentiment, a continued shift toward long-term holding for ETH suggests growing confidence in the asset.
Bitcoin’s Price Volatility
In a Dec. 17 post on X, technical analyst Ger Van Lagen suggested that Bitcoin’s price was "blowing off," with BTC later dropping from an all-time high of $106,000 to $93,000 between Dec. 16 and Dec. 30.
Euphoria and Long-Term Holders
Van Lagen attributed this move to long-term holders cashing out amid a period of euphoria. However, he maintained a distinctly bullish outlook on BTC, predicting the asset was on track to surpass $200,000 in the near future.
Spot Ether ETF Inflows Surge
In the last month, inflows into spot Ether ETFs have doubled, surging from $1 billion in net inflows in November to $2.1 billion worth of cumulative net inflows in December. This significant increase suggests growing confidence in ETH among investors.
Experts Weigh In: A Trump Administration’s Impact
Several experts from different sectors of the crypto industry believe that a Trump administration will be beneficial to ETH, particularly. They cite several developments as reasons for taking a bullish stance on ETH heading into 2025:
- Demise of "Financial Nihilism": The end of an era marked by financial uncertainty and volatility.
- Overhaul of the SEC: A complete overhaul of the Securities and Exchange Commission, which could lead to more favorable regulations for crypto assets.
- Addition of Staking to Ether ETFs: Increased opportunities for investors to participate in staking, a key feature of ETH’s ecosystem.
- Increased Regulatory Oversight from the CFTC: Greater clarity and guidance on regulatory frameworks for the crypto industry.
Conclusion
The data suggests that long-term holders are increasingly confident in Ethereum heading into 2025. With a Trump administration likely to bring about positive changes for the asset, investors may see ETH as an attractive option for their portfolios. As always, it’s essential to stay informed and adapt to market developments to make informed investment decisions.
