Key Points
- Throughout 2024, long-term holders shifted from Bitcoin to Ethereum, anticipating a strong Ethereum price rally in 2025.
- Despite underperforming Bitcoin in 2024, Ethereum is expected to outperform Bitcoin in 2025 according to market analysts.
During 2024, there was a noticeable increase in the number of long-term Ethereum holders, while the number of long-term Bitcoin holders decreased.
This trend indicates a shift in preference from Bitcoin to Ethereum, suggesting that investors are anticipating a strong Ethereum price rally in 2025.
Analytics Report
According to the blockchain analytics platform IntoTheBlock, the total percentage of Ethereum long-term investors increased from 59% in January to 75% by the end of 2024.
Conversely, the total percentage of long-term Bitcoin holders dropped from 70% to 62% in the same timeframe.
As of December 30, long-term holders accounted for 62.3% of Bitcoin ownership, while Ethereum’s long-term holder proportion stood at 75.06%.
Since mid-December, long-term Bitcoin holders have been heavily profit-booking and depositing a large number of BTC to crypto exchanges.
This resulted in a sharp correction in the Bitcoin price from its all-time high of $108K, and it is currently struggling to stay above the crucial support of $95,000.
Ethereum’s Performance
Despite underperforming Bitcoin throughout 2024, market expectations from Ethereum are very high.
Analysts predict that it would outperform Bitcoin in 2025.
Crypto analyst Daan Crypto Trades highlights Ethereum’s (ETH) ongoing attempt to establish a higher low against Bitcoin (BTC), suggesting a potential trend reversal on higher timeframes.
Breaking the crucial 0.04 BTC level would confirm this reversal, reducing Bitcoin dominance (BTC.D) and potentially triggering a broader rally in altcoins.
Historically, the ETH/BTC pair has performed well during the first quarter, adding weight to the optimistic outlook.
Over the past month, spot Ether ETFs have witnessed a significant surge in inflows, doubling from $1 billion in net inflows in November to $2.1 billion in cumulative net inflows by December.
Industry experts across various crypto sectors believe that the Trump administration’s policies could particularly benefit Ethereum (ETH).
