Lacking supply could lead to escalating prices of Bitcoin and Ethereum
Bitcoin attained an all-time high on the 9th of November, 2021 – reaching a peak of $68,500. Industry analysts are indicating that lacking supplies is a dominating factor underlying this peak, as some reports demonstrate that 85% of current supply has very much stayed dormant for the previous three months.
According to CoinGecko, which undertakes tracking of the cryptocurrency market, the cumulative worth of all digital coins is presently US$ 3.1 billion, (approximately $2.7 billion). This implies the price nearly quadrupled since the start of this year.
The supply of Bitcoin held on exchanges has now attained a historical low and Bitcoin has appreciated in price regardless of the lack of significant news events about the planet’s leading cryptocurrency. This indicates we are in a HODL wave, an abbreviation that stands for ‘hold on for dear life,’ which implies more and more people purchased their Bitcoin for the long term. Analysts are indicating $75,000 as a new target on the upside, however if the price takes a turn in the downward direction, the prices could drop to a moving average at approximately $56,000.
Ethereum also attained a new all-time high today reaching $4,842. ETH is currently approaching the really important psychological level of $5,000 which will probably be a robust resistance. The reason attributed to this strong price action is also lacking supply, as Ethereum is being burned at a quicker rate than it is being made. The BTC market cap is now more than that of Facebook and Tesla and BTC dominance is at 44%, which is lesser than usual.