Ethereum Whale, Retail Investors, and ETF: Perfect Storm for 2025?

In a year when the cryptocurrency field has undergone significant transformations, Ethereum has proven itself as a symbol of enduring trust among financial enthusiasts. Analysis from blockchain analytics company IntoTheBlock reveals that the percentage of long-term Ether holders—those who have held the digital currency for over twelve months—has increased from 59% in January to a staggering 75% in December 2024. Throughout that process, Ethereum has remained a symbol of consistency and trust, demonstrating the remarkable resilience of both fundamental innovation and unwavering support from a widespread community of local supporters. The increasing appeal of Ethereum This upward trajectory emphasizes a deeper confidence in the long-term potential of Ethereum. The integration of staking features into Ether exchange funds and clearer regulation of technology by organizations such as the Commodity Futures Trading Commission (CFTC) has significantly contributed to the increased trust in this platform. In December alone, spot Ether ETFs saw a doubling of inflows to $2.1 billion, a clear sign of strong institutional and retail interest. According to Leon, a respected investment strategist at Bitwise, "Ethereum is in a uniquely strong position to dominate the rapidly growing $100 trillion market for real-world assets that are encoded." This perspective reflects the increasing influence of Ethereum's largest accounts. Currently, 104 wallets hold over 100,000 ETH, with each wallet collectively controlling about 57% of the total Ether supply, totaling approximately $333 billion.

The divisive path of Bitcoin On the contrary, long-term Bitcoin holders have undergone a significant decline, dropping from 70% to 62% during the same period. This decline is mainly due to large sell-offs initiated by long-term holders, especially in the context of the market reaching its peak. In May 2024, long-term Bitcoin holders sold about 160,000 BTC, equivalent to ten billion dollars, with an additional 40,000 BTC sold the following month. Renowned technical analyst Ger Van Lagen has commented insightfully that "The valuation of Bitcoin has experienced significant fluctuations in December, dropping from an all-time high of $106,000 to $93,000." He attributes this correction mainly to long-term Bitcoin holders taking profits during the market boom. However, Van Lagen remains optimistic about BTC, predicting that the price could surpass the two hundred thousand dollar mark in the near future. Market fluctuations and future prospects The differing temperaments of Ether and Bitcoin owners highlight the dynamic nature of financial motivation. Ethereum's progress towards the legitimization of the equity crowdfunding method and its increasingly expanding role in decentralized finance (DeFi) has bolstered the confidence of financial experts. The doubling of Ether ETF inflows in December also emphasizes the enthusiasm of this developing organization. On the other hand, the late price fluctuations of Bitcoin and the selling pressure from long-term holders suggest that financial experts should reassess. The decline of long-term holders has reached an unprecedented level since July 2022, indicating a change in business sentiment. The increasing instability surrounding the use of energy and the organization of Bitcoin has caused some financial experts to withdraw and reassess, leading to a resurgence in interest in Ether. Meanwhile, Ethereum's ongoing changes in terms of stock recognition have supported a vision of development that could potentially provide more support and raise expectations for greater acceptance in more significant business transactions. Conclusion part As 2024 nears its end, the cryptocurrency landscape has sparked contrasting views on its main players. While Ethereum nurtures optimism with steady support accumulation, projecting achievements in the future, Bitcoin struggles to maintain faith in its long-term vision. The beginning of 2025 will demonstrate the validation of whether the sentiment is more divergent. If faith in Ethereum's promises continues and Bitcoin fails to gather steadfast belief, 2025 may herald the emergence of a new dominant digital currency. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)

ETH-1.78%
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