Ethereum Surpasses Bitcoin with Growing Investor Confidence
An in-depth analysis conducted by AMBCrypto has revealed a significant shift in investor sentiment towards Ethereum, as compared to Bitcoin. According to data from IntoTheBlock, the percentage of ETH holders who have kept their assets for over a year has risen from 59% in January 2024 to 75% by December 2024. This stands in stark contrast to Bitcoin, where the proportion of long-term holders has declined from 70% to 62.3% over the same period.
The increasing retention rate for Ethereum indicates a growing confidence among investors, driven by expectations of future network upgrades and broader utility. On the other hand, Bitcoin’s decline in long-term holders could be attributed to profit-taking or diversification strategies, suggesting a potential shift in market sentiment as investors show a preference for ETH heading into 2025.
Source: IntoTheBlock
Crypto Fear and Greed Index Hits Two-Month Low
In addition to the shift in investor behavior, Bitcoin faced another challenge as its Crypto Fear and Greed Index dropped to 64 on December 31st, marking the lowest level since October 15th. This decline reflects a decrease in market optimism as Bitcoin experienced a 12% drop in the past two weeks, trading near $93,000.
Source: Binance Square
Despite peaking at 94 in November, the index remained above 70 for most of December before the recent drop. This shift from extreme greed to a more cautious sentiment indicates heightened concerns about short-term market volatility.
Bitcoin Enters Accumulation Phase, Predicts Price Surge
Investor James Williams believes that Bitcoin is currently entering a crucial accumulation phase. In a recent post on X (formerly Twitter), Williams described the current conditions as an opportunity for long-term positioning. He predicts a consolidation period in the coming weeks, setting the stage for a significant breakout.
Confident in Bitcoin’s long-term trajectory, Williams forecasts a price of $131,500 or higher by Q1 2025, emphasizing that patience during consolidation phases often leads to substantial upward moves in Bitcoin’s price.
Read Ethereum [ETH] Price Prediction 2025-2026