Ethereum investors steadily pile in as Bitcoin holders cash out: ITB

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

While long-term holders of Bitcoin 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 assessing market cycles. As the price rises, these investors begin to unload their accumulated assets, which in turn initiates the early stages of a bull market and continues its high. Rather than following Bitcoin’s lead, a divergence has been seen and long-term holders of Ethereum have maintained their accumulation.

According to IntoTheBlock’s latest analysis, this behavior marks a departure from the last cycle where the actions of Ethereum holders closely mirrored those of Bitcoin investors.

The change is attributed to Ethereum’s growing yield opportunities, making it more lucrative.

IntoTheBlock currently estimates that 27.5% of the total ETH supply is staked. Meanwhile, 16.3% of this staked ETH is being recovered through protocols such as Eigenlayer, Karak Network, and Symbiotic. This trend demonstrated a strong demand for native yield among ETH holders.

Additionally, many long-term Ethereum holders could be biding their time for the timely Ethereum ETF approval and new all-time highs before deciding to sell. As previously reported, more than 83% of ETH holders are currently in profit, with additional catalysts in play, the asset could witness a significant increase in the future.

Although Bitcoin led the pack with nearly 90% of its profit holders, the bearish trend persists as the major crypto asset nears a crucial demand zone. The data suggests that investors should monitor the support level between $61.9 and $63.8 thousand.

Bitcoin transactions plummet

Glassnode’s latest analysis revealed a significant decline in transaction volume on the Bitcoin network after its all-time high despite good returns for investors.

This reduction in transaction volume could be evidence of a waning appetite for speculation among investors and a growing sense of indecision in the market.

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