Bitcoin, Ether Hit All-time Highs

Bitcoin and ether hit record highs on Tuesday, with enthusiasm for cryptocurrency adoption and worries about inflation driving momentum and flowing into the asset class.

Although the two virtual currencies have pulled back from their highs in the US trading session, their trajectory was clearly headed higher.

Bitcoin rose to $68,564.40 and fell 0.1% to $67,325, while the price of Ether, the second largest cryptocurrency, reached $4,842.65 before trading down 0.7% at $4,774.

Both have more than doubled since June and added nearly 70% against the dollar since the start of October.

Market momentum has been gathering since the launch of a bitcoin futures-based exchange-traded fund in the US last month, raising expectations for flow-driven gains.

Data from digital asset manager CoinShares showed that inflows into bitcoin products and funds reached a record $6.4 billion this year, totaling $95 million last week.

Huge pandemic savings and a more upbeat global growth prospects suggested that digital assets would remain well-supported, analysts said.

Analysts said the pandemic's massive savings and a more optimistic global growth outlook suggest digital assets will remain well supported.