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Cryptocurrency Price Speculations / Re: Does the selling of bitcoin-backed shares have an effect on BTC's price?
« on: Today at 07:58:04 PM »In my opinion, there are some point that it would affect the price of Bitcoin but most of the time it won't. Just like what I've said, Bitcoin prices only affected when there's a changes in a circulating supply and marketcap. So if Bitcoin's price affected by selling Bitcoin backed shares, probably they are just afraid that the Bitcoin will be the next, especially if this thing always happened in the market. We can make a comparison to news into that.We have to understand that the price of Bitcoin can be determined by its market capitalization and circulating supply. If ever there was a changes any of them will affect the price. If a company sell Bitcoin, let us say Microstrategy, it will make the price to decrease but the decrease of the price vary on how much the value of Bitcoin they are selling. Sometimes it's a domino effect, when one company sell Bitcoin and the other company saw it, they will also sell Bitcoin and going to reinvest in a lower price.Yes, what you say is correct, but the topic mainly talks about the effect of selling stocks backed by Bitcoin and not about selling Bitcoin itself.
Personally, I do not expect that selling shares will have a significant material impact on the price, but of course it will have a significant psychological impact and may cause fud and people will start selling.
As for selling Bitcoin itself, it will not affect the market unless there is a sale of large quantities from several companies and not from one company, because the market value of Bitcoin is enormous and will not be affected by the sale of one company’s holdings.