NEW YORK/SYDNEY—Bitcoin and ether hit record peaks on Tuesday, with enthusiasm for cryptocurrency adoption and worry about inflation driving momentum and flows into the asset class. Though both virtual currencies pulled back from their highs in the U.S. session, their trajectory was clearly headed higher. Bitcoin rose as high as $68,564.40 and was last down 0.1 percent at $67,325 while ether, the second-biggest cryptocurrency by market value, earlier hit $4,842.65 before trading down 0.7 percent at $4,774. Both have more than doubled since June and added nearly 70 percent against the dollar since the start of October. “This move is a culmination of months of net outflows from exchanges and coming off the market, coupled with increasing demand,” said Martha Reyes, head of research at digital asset prime brokerage and exchange BEQUANT. “This creates a supply shock and we are far from levels where long-term holders, who make up a …