- Ethereum’s long-term holders rose while Bitcoin’s retention fell, signaling shifting market trends
- Fear and Greed Index dropped as crypto crash concerns grew, impacting investor sentiment and market optimism
This year, long-term holding trends in the crypto market have taken an unexpected turn. While Bitcoin [BTC] has surged by 122% and Ethereum [ETH] has seen a more modest 48% increase, the latter has still surpassed Bitcoin in retaining long-term investors.
This shift highlighted a growing sense of market confidence in Ethereum, suggesting that as 2025 draws near, more investors are placing their trust in its future potential.
This evolving trend could have significant implications for both the market’s dynamics and investor sentiment moving forward.
ETH outshines BTC
An in-depth analysis by AMBCrypto revealed that the percentage of ETH holders who kept their assets for over a year rose from 59% in January 2024 to 75% by December 2024, according to IntoTheBlock data.
This contrasted sharply with Bitcoin, where the proportion of long-term holders declined from 70% to 62.3% over the same period.
Source: IntoTheBlock
The growing retention rate for Ethereum suggested heightened confidence among investors, driven by expectations of future network upgrades and broader utility.
Meanwhile, Bitcoin’s decline in long-term holders may reflect profit-taking or diversification strategies, indicating a potential shift in market sentiment as investors prioritize ETH heading into 2025.
Fear and Greed Index drops to two-month low
Notably, losing HODLers wasn’t the only problem the king coin was facing. It’s Crypto Fear and Greed Index fell to 64 on the 31st of December, marking the lowest level since the 15th of October.
This decline reflected waning market optimism as Bitcoin tumbled over 12% in the past two weeks to trade near $93,000.
Source: Binance Square
After peaking at 94 in November—driven by excitement surrounding pro-crypto U.S. election results, the index remained above 70 for much of December before the recent pullback. The drop signaled a shift from extreme greed to a more cautious sentiment among investors.
While greed still dominated, the decline highlighted heightened concerns about short-term market volatility as traders reacted to Bitcoin’s price movements and the broader market’s mixed signals.
Read Ethereum [ETH] Price Prediction 2025-2026
BTC in an accumulation phase?
Despite the dip, investor James Williams believes Bitcoin is entering a crucial accumulation phase. In his latest X (formerly Twitter) post, Williams described the current conditions as an opportunity for long-term positioning.
Williams predicted a consolidation period over the coming weeks, potentially setting the stage for a significant breakout. Confident in Bitcoin’s long-term trajectory, Williams views the current price action as part of a natural market cycle and forecasts a price of $131,500 or higher by Q1 2025, calling such levels “inevitable.”
He emphasized that having patience during periods of consolidation often rewards investors, as such phases historically precede substantial upward moves in Bitcoin’s price.
