Bitcoin's liquid supply has decreased by around 30% over the last 18 months, with nearly 1 million BTC leaving exchanges, resulting in a reduced pool of available coins that can lead to potential price surges.
Three US states have passed laws to hold Bitcoin as part of their reserves, while other countries like Pakistan and the UK are also exploring Bitcoin reserves, signaling growing institutional adoption and potentially driving more demand.
Bitcoin is increasingly seen as a safe-haven asset amidst concerns over the US dollar and debt levels, with rising interest from investors seeking alternatives during times of uncertainty, leading to increased activity in the crypto markets.
Ethereum's recent performance improvement following upgrades has attracted more interest, with big banks and financial firms exploring tokenization platforms on Ethereum, potentially boosting overall demand for top cryptocurrencies like Bitcoin.