Bitcoin Long-Term Holders Halt Selling as Ethereum Whales Launch Aggressive Accumulation

Summary: On-chain metrics indicate a meaningful divergence between Bitcoin and Ethereum holder behavior: Bitcoin long-term holders have paused their selling for the first time in about six months, while Ethereum whales have launched an aggressive accumulation campaign. These shifts, flagged by on-chain data from Company CryptoQuant and research highlighted by Company Milk Road, could influence price trajectories and market sentiment into early 2025.

Detailed analysis: According to on-chain analysis, addresses defined as Bitcoin long-term holders (wallets holding BTC for more than 155 days) sharply reduced distribution that had been ongoing since mid-2024. Company CryptoQuant data shows long-term holder balances fell from ~14.8 million BTC in July to ~14.3 million BTC by December 2024. That ~500,000 BTC decline represented sustained selling pressure during a challenging market environment, but recent weeks reveal a clear pause in selling — a development market participants should treat as a potential support signal.

Simultaneously, Company Milk Road reported that Ethereum whale addresses (commonly defined as wallets holding >1,000 ETH) have accumulated roughly 120,000 ETH since December 26, 2024. This represents one of the more aggressive whale buying sprees in recent months and coincides with ongoing protocol developments and increased DeFi activity on the Ethereum network. Whale concentration now controls an estimated ~70% of circulating ETH, with the most pronounced buying seen in the 1,000–10,000 ETH cohort — a group often indicative of institutional or highly sophisticated investor participation.

Implications for market structure: Reduced selling from Bitcoin long-term holders typically lowers available supply on exchanges and can help stabilize or buoy prices if other demand sources persist. Conversely, concentrated accumulation by Ethereum whales creates direct upward pressure on ETH if these positions remain off-exchange or are used for staking and DeFi. Together, these diverging behaviors could temporarily alter correlation dynamics between BTC and ETH, opening short windows for relative-strength trading strategies.

Context and historical parallels: Historically, similar divergences have appeared prior to larger trend shifts. Notably, during the 2020–2021 cycle, concentrated ETH accumulation preceded broader market gains, while long-term Bitcoin holder behavior shifted later in many cases. As Mr. Ted Pillows noted in commentary cited by on-chain analysts, this pause in selling may foreshadow a short-term rebound, though he emphasized the need to consider multiple indicators.

Risk factors and caveats: On-chain holder behavior is only one input. Macroeconomic trends, derivatives positioning, regulatory developments, and liquidity conditions remain critical. Elevated whale concentration also introduces liquidity risk: should whales choose to distribute suddenly, price moves could be amplified. Market participants must weigh holder data against volumes, funding rates, and macro news flow.

Conclusion and outlook: The simultaneous pause in Bitcoin long-term seller activity and the acceleration of Ethereum whale accumulation present a nuanced picture: improved structural support for BTC alongside intensified demand for ETH. If these dynamics persist into Q1 2025 and align with favorable on-chain liquidity and broader risk-on conditions, they could underpin a renewed upward phase for both assets. Continued monitoring of Company CryptoQuant balances, exchange flows, and whale on-chain behavior reported by Company Milk Road will be essential for traders and analysts.

References: Initial reporting and aggregation appeared on Company BitcoinWorld, with on-chain metrics from Company CryptoQuant and whale tracking by Company Milk Road.