SwissHodler on Nostr: When Bitcoin’s price doubles, its market cap also doubles, but that doesn’t mean ...
When Bitcoin’s price doubles, its market cap also doubles, but that doesn’t mean twice the amount of new money had to flow in.
Why?
Bitcoin’s price is set by buyers and sellers on exchanges, not by the total amount of money in Bitcoin.
🚀 If demand increases and buyers are willing to pay more, price goes up, even if not much new money enters.
🚀 The order book (where buy and sell offers are listed) is thin at certain price levels, so even a small amount of buying pressure can move the price significantly.
🚀 Most Bitcoin HODLers (i.e. laser-eyed psychopaths) aren’t selling, so there’s low liquidity. Fewer coins available for trade mean even modest demand spikes can drive prices up fast.
Bitcoin’s price can skyrocket with relatively little money, because supply is tight and the market reacts fast to demand changes.
Are you ready? 🚀
Why?
Bitcoin’s price is set by buyers and sellers on exchanges, not by the total amount of money in Bitcoin.
🚀 If demand increases and buyers are willing to pay more, price goes up, even if not much new money enters.
🚀 The order book (where buy and sell offers are listed) is thin at certain price levels, so even a small amount of buying pressure can move the price significantly.
🚀 Most Bitcoin HODLers (i.e. laser-eyed psychopaths) aren’t selling, so there’s low liquidity. Fewer coins available for trade mean even modest demand spikes can drive prices up fast.
Bitcoin’s price can skyrocket with relatively little money, because supply is tight and the market reacts fast to demand changes.
Are you ready? 🚀