Blockchain analysis company IntoTheBlock pointed out in an article released on Sunday, the 23rd, that there is an intriguing divergence between long-term holders of Bitcoin (BTC) and Ethereum (ETH). Data shows that long-term holders of Bitcoin have been selling since January this year, while long-term holders of Ethereum have been accumulating tokens, forming a sharp contrast to their behavior in the previous cycle.
IntoTheBlock explains that long-term holders start selling their accumulated assets as prices rise. This profit-taking behavior typically begins in the early stages of a bull market and continues until after the peak of the cycle. Monitoring this activity helps to more accurately estimate market peaks.
Given Bitcoin’s significant influence on other aspects of the market, it is often used as a measure of these cycles’ most direct assets, as other cryptocurrencies tend to follow Bitcoin’s trend. 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 states:
“Long-term holders of Ethereum may also 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 Ethereum spot ETFs in the United States have submitted revised S-1 documents, awaiting further comments from the U.S. 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.