Ok that's interesting thanks for clarifying. How does that work? Why would only 100B needed to move Ethereum's market cap from 200B to 1T?
Bank of America strategists suggested to Bloomberg that the price of BTC can be moved 1% for just $93 million. And it is estimated $40 billion dollars of the $1.9 trillion stimulus could find it's way into cryptos!
https://finance.yahoo.com/news/bitcoin-could-boom-430-ethereum-133606997.html
Say you bought ETH for $500. If someone buys today for $1,800 Do you receive $1,300? No. Only the person they purchase the ETH from receives the $1,800.
Lets create 1M gibcoins and he has all of them. I determine they are valued at $1ea and I buy 500k. The market cap is now 1M with a capital injection of 500k (2x). You then come along and you determine they are worth $10ea and you buy 100k for 1M. Market cap is now 10M with a 1M capital injection 10x).
That’s how it works. Same with the sharemarket. Volatility is inverse to liquidity where high volatility results from low liquidity and vice versa. It’s why bond markets are the most liquid in the world and also have the lowest yield. Big money flattens yield curves but increases liquidity.
The above also leads into my posts about scarcity vs price.
We are seeing a ‘scarcity’ valuation reaction to Bitcoin right now.
Coins leaving exchanges = price is too cheap (what we are seeing currently)
Coins entering exchanges = price is high and a great time to get out
Supply has been leaving exchanges for longer than any previous crypto history. Even at 60k, coins were still leaving exchanges and decreasing supply. At the point where we see that trend reverse and supply increases, we will have a short period of lag before the market cycle top.
Does that help?