Bitcoin and Ether hit record highs on Tuesday, continuing the uptrend seen in digital assets.
BTC surpassed $ 68,525, but then fell to $ 67,201. Ether also jumped to $ 4,840, but then declined to $ 4,812.
In any case, reaching new highs pushed Bitcoin's market cap to nearly $ 1.29 trillion. Ether, meanwhile, has a market cap of over $ 570 billion.
These two leading cryptocurrencies have experienced a rift over the past year, namely the launch of the iconic Bitcoin Futures ETF and a network update on Ethereum.
Bitcoin is popular because it is seen as a store of value and a good platform for future payments, while Ethereum skyrocketed because of decentralized finance (DeFi).
As such, Bitcoin was trading at $ 15,300 a year, but now it is up by nearly 350%. Ether, on the other hand, costed lower than $ 450 in November 2020, but has grown 975% since then.
Jonas Luethy, Sales Trader at GlobalBlock, said: "Analysts are suggesting that a lack of supply is a major factor as some reports show that 85% of existing supply has remained inactive for the past 3 months. Analysts are suggesting $75,000 as a target on the upside, but if the price takes a turn downwards, the price could fall to the 50-day moving average at around $56,000."
Luethy also noted that Ether is approaching $ 5,000, which is probably difficult to overcome. "The reason attributed to such strong price action is also a lack of supply as Ethereum is being burned faster than it is being produced," he said.