Bitcoin (BTC) Long-Term Holders Have Started Selling, But Ethereum (ETH) Hodlers Are Still Accumulating

That's according to data shared by on-chain analysis firm IntoTheBlock, with the firm noting that the behavior of long-term holders is critical to understanding market cycles.

Long-term Bitcoin (BTC) holders have begun selling the coins they hoarded during the bear market in January, when spot Bitcoin exchange-traded funds (ETFs) were launched in the United States. In contrast, long-term Ethereum (ETH) holders continue to accumulate.

This behavior is crucial for understanding market cycles, as historical data shows that this profit-taking usually begins in the early stages of a bull market and continues past the cycle peak, according to IntoTheBlock.

Due to Bitcoin's dominance in the crypto space, it's often the easiest asset to use for measuring these cycles, as other digital assets tend to follow the flagship cryptocurrency's lead, the firm noted.

However, there's a notable divergence here, as long-term ETH holders are currently still accumulating new tokens, which contrasts sharply with their behavior in the last cycle, where it closely mirrored that of Bitcoin holders.

This deviation from the traditional pattern is likely caused by the emergence of attractive yield opportunities within the Ethereum ecosystem, IntoTheBlock stated.

Unlike Bitcoin, Ethereum offers staking mechanisms that allow holders to earn passive income on their holdings, and there are additional yield strategies within the decentralized finance space.

According to a recent analysis, a staggering 27.5% of the total ETH supply is currently staked, with a significant portion (16.3%) being re-invested through protocols like Eigenlayer, Karak Network, and Symbiotic to further the yield being generated.

Moreover, the potential approval of a spot-traded Ethereum ETF could be another factor influencing the behavior of long-term holders. These investors might be waiting for this regulatory milestone and a potential surge in price to new all-time highs before considering selling their ETH.

Last month, the SEC approved applications from major stock exchanges to list spot Ether ETFs, clearing the path for these products to start trading later this year. The approval marks a significant shift for the SEC, which has historically been cautious about cryptocurrency and had been investigating whether to deem the second-largest cryptocurrency a commodity or a security.

While the exchange applications were approved, individual ETF issuers including VanEck, ARK Investments, and BlackRock still need the SEC to greenlight their registration statements before trading can begin.

It's also worth noting that over 83% of current ETH holders are already sitting on a profit, and with additional catalysts on the horizon, the asset could be poised for a significant rally.

Meanwhile, over 89% of BTC holders are currently in a state of profit, but investors holding the cryptocurrency appear to be more bearish.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-term-holders-started-selling-ethereum-eth-hodlers-accumulating.html

The above is the detailed content of Bitcoin (BTC) Long-Term Holders Have Started Selling, But Ethereum (ETH) Hodlers Are Still Accumulating. For more information, please follow other related articles on the PHP Chinese website!