Ethereum Investors Steadily Accumulate as Bitcoin Holders Cash Out: ITB

Historically, bitcoin has played a crucial role in driving market trends. Because of this substantial influence over other cryptocurrencies, btc has served, time and time again, as a leading indicator.

While long-term bitcoin holders began liquidating their positions in January, their ethereum counterparts have been steadily accumulating.

Divergence among ethereum holders

The behavior of long-term holders is crucial to measuring market cycles. As prices rise, these investors begin to unload their accumulated assets, which, in turn, begins the early stages of a bull market and continues at its peak. Instead of following bitcoin's lead, a divergence has been seen and long-term ethereum holders have maintained their accumulation.

According to the latest ethereum-vs-bitcoin-Diverging-Paths-of-Long-Term-Holders/” target=”_blank” rel=”noopener” data-wpel-link=”external”>analysis According to IntoTheBlock, this behavior marks a departure from the last cycle when the actions of ethereum holders closely mirrored those of bitcoin investors.

The change is attributed to increasing yield opportunities for ethereum, making it more lucrative to maintain.

Currently, IntoTheBlock estimates that 27.5% of the total eth supply is up for grabs. Meanwhile, 16.3% of this staked eth is being x.com/intotheblock” target=”_blank” rel=”noopener” data-wpel-link=”external”>rethought through protocols such as Eigenlayer, Karak Network and Symbiotic. This trend demonstrated strong demand for native yield among eth holders.

Additionally, many long-term ethereum holders could be waiting for approval of the ethereum spot ETF and new all-time highs before deciding to sell. As previously reported, over 83% of eth holders are currently making profits, with additional catalysts in play, the asset could witness a significant rally in the future.

While bitcoin led the pack with almost 90% of its holders making profits, the bearish trend persists as the leading crypto asset. x.com/intotheblock/status/1804087197752066418″ target=”_blank” rel=”noopener” data-wpel-link=”external”>fleet close to a crucial demand area. The data suggests that investors should monitor the support level between $61,900 and $63,800.

bitcoin transactions plummet

The latest Glassnode analysis x.com/glassnode/status/1803446574099439628″ target=”_blank” rel=”noopener” data-wpel-link=”external”>revealed a significant decline in transaction volume on the bitcoin network following its all-time high despite healthy investor profitability.

This reduction in trading volume could potentially highlight a reduced appetite for speculation among investors and a growing sense of indecision within the market.

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