Ethereum Outpaces Bitcoin as Long-Term Holders Soar to 74.7%

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Over an extended period, the ownership distribution between Ethereum (ETH) and Bitcoin (BTC) indicates a clear preference for ETH, as more individuals seem to be holding onto it over time.

In my analysis, it’s worth noting that as we stand today, approximately 74.7% of Ethereum wallets are held by long-term investors. This percentage outweighs the long-term holder ratio for Bitcoin, which currently hovers slightly below 61%.

Ethereum Leads in Holder Ratios

Based on recent findings by IntoTheBlock, it appears that Ethereum investors are increasingly choosing to hang onto their assets for longer periods. This might indicate a growing belief in ETH’s future direction. The analytical platform suggests that this trend may persist until Ethereum approaches its previous record high. At that point, if holders decide to cash out, we could see a decrease in these retention rates.

It’s worth pointing out that the percentage of Ethereum investors holding for the long term continued to grow in 2024. Conversely, the number of Bitcoin holders decreased during the same timeframe.

Indeed, data from IntoTheBlock indicated that the percentage of long-term Ethereum holders increased significantly from 59% at the start of the year to 75% by the end of 2024. Meanwhile, Bitcoin’s share of long-term holders decreased gradually, dropping from around 70% to 62%.

Additionally, the volatile market movements caused a temporary dip in Bitcoin’s value below $92,000 this week. Since then, it has slightly rebounded, now trading slightly above $94,000. However, despite this, the Funding Rate of Bitcoin, which indicates demand within the derivatives market, remains relatively low.

Bitcoin Funding Rates Fall While Ethereum Eyes a Rally

According to CryptoQuant’s explanation, for a price surge to last, it needs to be supported by robust demand, and this is typically shown through Funding Rates. It’s not unusual for these rates to increase late during a rally, but when they don’t show up, it can make people wonder about the market’s underlying vitality. In the recent Bitcoin surge, we saw an influx of demand later on, as indicated by the spike in Funding Rates.

After hitting the $108,000 resistance point last week, Bitcoin’s rates dropped significantly. This downward trend suggests that investor confidence is decreasing and the bullish momentum is fading. If Bitcoin cannot maintain its position above the crucial $90,000 support level, it may face increased selling and could potentially experience more significant corrections.

As a researcher, I’ve recently noticed that Ethereum seems to be moving within an ascending parallel channel. If this pattern holds true, a potential drop to the lower boundary around $2,800 might act as a strong support level and potentially kickstart a substantial surge, possibly propelling Ether towards the $6,000 mark.

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2025-01-10 13:36