- Ethereum has pulled massive liquidity from Bitcoin this January, positioning itself for another strong performance.
- With higher stakes than ever, ETH is on track to outpace Bitcoin.
As the new year kicks off, a major shift is underway in the crypto market. Fresh capital is pulling away from Bitcoin [BTC], as uncertainty looms after its recent crash. Investors are on edge, unsure of what’s to come.
Meanwhile, the ongoing macroeconomic turbulence, especially concerns about a looming debt crisis in the U.S., is raising fears of a repeat of the 2022 Bitcoin cycle.
In the midst of this, Ethereum [ETH] is gaining serious traction, with its strong historical performance catching the eye of many investors.
With Q1 around the corner and the market in flux, will Bitcoin or Ethereum offer the strongest returns? Now is the time to weigh your options and decide where to place your bets.
Ethereum/Bitcoin January rally in focus
Historical trends tell us that Q1 is often a strong quarter for crypto. While Bitcoin grabs the headlines, Ethereum has consistently outperformed with stronger price gains.
Around mid-January, the ETH/BTC pair typically experiences a series of green candlesticks, often signaling a surge in capital inflows by February. This year, Ethereum soared by 85%, reaching $4,087 by mid-March.
Source : TradingView
But it’s not just the charts that matter. Mid-January is also a critical time for governments, as they finalize their annual budgets. And this year, the stakes are higher than ever.
With the new administration planning to tackle a whopping $7 trillion debt and cut spending, the pressure is on. Add to that the growing debate over raising the debt ceiling, and we’re in for a volatile mix.
In short, the government’s approach to addressing its debt could create even bigger financial challenges down the line.
But, will Bitcoin emerge as a safer bet?
It’s a high-stakes gamble. Bitcoin’s recent drop from its ATH of $108K to $92K signals a tough market environment, with investors staying cautious.
Retail FOMO is on hold – unless a significant dip sparks a buying frenzy. Now, it’s up to the big players to drive a supply shock.
With 2025 shaping up to be volatile, the answer seems clear: Bitcoin may not be the safe bet just yet.
What adds more uncertainty is Bitcoin’s long-term holder (LTH) control, which has dipped to 62.31%. In contrast, Ethereum’s LTH stands strong at 75.06%.
Source : IntoTheBlock
Bitcoin’s LTH percentage has been slipping since March, when BTC hit $73K, continuing to fall even after new ATHs.
Meanwhile, Ethereum has been on a steady uptrend, with its LTH control growing in tandem with its rally to $4K. The message is clear: Ethereum’s long-term holders are confident and committed.
This shift is crucial for one key reason: Retail investors often turn to LTH metrics as a sign of market confidence. Ethereum’s growing LTH base is a strong indicator of stability.
Read Ethereum [ETH] Price Prediction 2025-2026
When you factor in Ethereum’s solid historical performance in January and its strengthening long-term holder support, it’s clear that Ethereum is poised to take the lead, potentially leaving Bitcoin behind.
But the true catalyst is still to come. Stay alert during this high-stakes month. It could set the stage for a year of big moves and even bigger opportunities for your portfolio.
