Crypto Market Surges as Long-Term Holders Reduce Supply

Crypto market is experiencing a significant surge, with Bitcoin reaching its highest weekly close in over eight months. Bitcoin climbed to $86,436.31, up 2.1% over 24 hours and 3.4% over the week. This represents a nearly 50% increase over the past three months. Ethereum also gained 1.4% to $2,727.32, XRP rose 2.1% to $1.52, and BNB added 2.2% to $796.82. One reason for the market's upward trend is the tightening of supply, with long-term holders sitting on more Bitcoin than ever, barely selling even through recent volatility. This leaves less supply available to the market. Michaël van de Poppe notes that many traders expected a deep correction similar to past cycles, but upside volatility this cycle has been smaller, suggesting the downside needs to be smaller too. He describes this cycle as a 'different cycle' that could later be referred to as the 'Crypto' cycle, with a dot-com style chart.