Blockchain analysis company IntoTheBlock pointed out in an article released on Sunday (23rd) that there is an intriguing divergence between long-term holders of Bitcoin (BTC) and long-term holders of Ethereum (ETH). Data shows that long-term holders of Bitcoin started selling off in January this year, while long-term holders of Ethereum continued to accumulate tokens, forming a sharp contrast to their behavior in the previous cycle.
IntoTheBlock explained that long-term holders tend to sell their accumulated assets as prices rise. This profit-taking behavior usually begins in the early stages of a bull market and continues until after the peak of the cycle. Monitoring this activity helps to estimate market peaks more accurately.
Given Bitcoin’s significant impact on other aspects of the market, it is often used as a direct measure of these cycles, as other cryptocurrencies tend to follow the trend of Bitcoin. However, the data tracked by IntoTheBlock shows that long-term holders of Ethereum have taken a different path this year.
IntoTheBlock believes that this shift may be due to the emergence of many profit opportunities in Ethereum, making holding Ethereum more profitable. The platform further stated:
“Long-term holders of Ethereum may be waiting for the approval of Ethereum spot ETFs and new all-time highs before deciding to sell.”
Nate Geraci, President of The ETF Store, stated over the weekend that all issuers of US Ethereum spot ETFs have submitted revised S-1 documents and are waiting for further comments from the US Securities and Exchange Commission (SEC). Geraci believes that Ethereum spot ETFs may be approved in the next two weeks, while Bloomberg ETF analyst Eric Balchunas predicts that July 2nd could be a potential approval date.
