Lack of Bitcoin supply could hike the price up
Bitcoin reached a new all-time high of $68,500 early this morning. According to analysts, the lack of supply is a big factor. Reports reveal that more than four-fifths of existing supply has remained inactive for the past 3 months according to Jonas Luethy, Sales Trader at the UK based digital asset broker GlobalBlock.
Supply on exchanges hits record low
Bitcoin’s new ATH coincides with supply held on exchanges at a record low. Is it only a coincidence? Analysts suggest $75,000 as a target on the upside, but the price might drop to $56,000, the 50-day moving average, if the market turns bearish.
Ethereum also at new ATH today
The second-biggest crypto by market cap also reached a new all-time high of $4,842 today. It is now approaching the psychological border of $5,000, which is probably going to be a strong resistance level. As ETH is being burned more rapidly than it’s being produced, the lack of supply is definitely a factor in strong price action.
Bitcoin’s market cap beats Tesla and Facebook
At the moment, Bitcoin’s market cap is higher than that of Tesla and Facebook as the total cryptocurrency market cap approaches $3 trillion. However, its dominance is lower than usual at 44%.
Crypto hubs in the US
New York City and Miami are becoming the preeminent hubs of crypto in the US. New York City Mayor-elect Eric Adams wants city schools to teach crypto. After promising to take his first three pay cheques in Bitcoin, he stated that he would explore ways to enable payments to New Yorkers in Bitcoin.
Crypto goes mainstream
Miami Mayor Francis Suarez also promised to take his next pay cheque in Bitcoin. He is one of many public figures showing support of cryptocurrency, which is yet another sign of digital assets’ advent into the mainstream.