Since January, long-term Bitcoin holders have begun to gradually liquidate their positions, while long-term Ethereum holders continue to increase their holdings. The behavior of long-term holders is very important for measuring market cycles. Currently, long-term Ethereum holders are not following the trend of Bitcoin, but choose to continue to accumulate assets.
According to IntotheBlock's analysis, this phenomenon is different from previous cycles. In the past, the behavior pattern of Ethereum holders was similar to that of Bitcoin investors. However, IntotheBlock pointed out that this change may be due to Ethereum holders seeing more profit opportunities and Ethereum's profitability has increased. Currently, it is estimated that about 27.5% of the total supply of Ethereum is staked.
The trend of increasing staking by long-term Ethereum holders may indicate that they are waiting for the approval of the Ethereum spot ETF and its price to hit a new high, rather than choosing to sell assets. Currently, more than 83% of Ethereum holders are in profit. If more positive factors emerge in the future, it may trigger a sharp rebound in Ethereum prices.
Meanwhile, Bitcoin is still in the lead, with about 90% of holders making profits, but the market is still bearish. Glassnode's latest analysis shows that although Bitcoin investors have received considerable returns, the transaction volume of the Bitcoin network has dropped significantly after hitting a record high. This decrease in transaction volume may mean that investors' speculative desire is weakening and market uncertainty is increasing.
This decline in Bitcoin transaction volume may reflect investors' cautious attitude towards the market outlook and also indicate that the market may enter a more stable but depressed phase. Relatively speaking, Ethereum's performance is more positive, and its holders' accumulation and staking behavior show confidence in the future.
Overall, the behavior of long-term holders of Bitcoin and Ethereum reveals different trends in the current market. Bitcoin holders tend to take profits, while Ethereum holders continue to increase their holdings in the expectation of higher returns. In this turbulent market environment, investors need to pay close attention to these trends, balance risks and returns, and make rational investment decisions.
