Bitcoin has surged to new heights, reaching an all-time high of $108,260 on December 17. This rally is backed by strong institutional demand, with spot Bitcoin ETFs seeing consistent inflows and MicroStrategy purchasing $1.5 billion worth of BTC. Ethereum is also benefiting from the momentum, with growing ETF inflows and shorts being liquidated. The macroeconomic environment is complex, with a weakening US dollar and rate cut expectations, but this could ultimately benefit Bitcoin and Ethereum.
Experts believe that Bitcoin's supply dynamics are tightening, with institutional investors snapping up BTC faster than it can be mined. This could lead to a supply shock and amplify BTC's next leg up. Ethereum is also showing signs of structural strength, with long-term holders shifting into "greed mode." While volatility remains a given, especially with the Fed's decisions looming, the current rally has strong foundations. As always, managing risk is key, and investors should never invest more than they can afford to lose.