Bitcoin reached a new all-time high of $68,500 early this morning. Analysts point to limited supply as a major factor behind the rally. According to Jonas Luethy, a sales trader at UK-based digital asset broker GlobalBlock, reports show that more than four-fifths of the current supply has remained inactive over the past three months.
Exchange supply at record low
The fresh Bitcoin high coincided with exchange-listed supply falling to record lows. Is that merely coincidence? Some analysts project prices could climb to $75,000 if momentum continues, while a market reversal could see Bitcoin pull back to around $56,000—the 50-day moving average.
Ethereum sets a new peak, too
Ethereum, the second-largest cryptocurrency by market capitalization, also reached a new record today at $4,842. It is now approaching the psychological $5,000 level, which could act as a strong resistance point. With Ethereum being burned faster than it is issued, constrained supply is clearly contributing to its robust price performance.
Bitcoin market cap surpasses Tesla and Facebook
Bitcoin’s market capitalization now exceeds that of Tesla and Facebook, as the total cryptocurrency market valuation nears $3 trillion. Despite this growth, Bitcoin’s dominance has eased somewhat to around 44 percent.
Crypto hubs emerging in the United States
New York and Miami are solidifying their status as the United States’ principal cryptocurrency hubs. New York Mayor Eric Adams has advocated for including cryptocurrencies in city school curricula. After pledging to accept his first three paychecks in Bitcoin, he said he is exploring ways to enable Bitcoin payments.
Cryptocurrency moving toward the mainstream
Miami Mayor Francis Suarez has also pledged to take his next paycheck in Bitcoin. He is among several public figures who have signaled support for the digital currency, another sign that digital assets are increasingly entering mainstream awareness.