Two months after its last one, bitcoin has once again hit all-time high, crossing $112,000 around 12:30 ET today before reaching $113,804.

Between the lines: There aren’t many bitcoins available for regular people to buy right now, and the shrinking liquid supply is putting a floor on price.

Zoom in: The amount of bitcoin held on exchanges has been dropping since April, suggesting investors are not in a mood to sell.

The big picture: Several factors likely also have bitcoin investors feeling bullish.

• Macro conditions are better than expected, with rate cuts looking more and more possible. And extra liquidity out there in the markets tends to accrue gains to bitcoin.
• Then there’s the policy momentum. Next week is Crypto Week in the U.S. House of Representatives, and it looks very likely that lawmakers will vote on legislation that the digital asset industry has requested for the better part of a decade.
• It would be wildly surprising if a bill reaching the president’s desk was not good for bitcoin price as well, so investors might be buying now to harvest some short term gains.

The bottom line: The more long-term holders there are in the market, the better it is for bitcoin price.

• The fewer people that are selling, the harder it is for the quoted price to fall.