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RE: Bitcoin (BTC) Morning Update: Don't Confuse the Trees for the Forest

in #bitcoin7 years ago

Ask yourself how likely it is that new demand will enter the picture - whether that be from individuals in developing nations as is often possited as a growth driver, or the potential for 'institutional money'. If you think there will be buyers to outstrip suppy then the price will increase. If not.....

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Don't forget that available supply also matters. The vast majority of supply is held by just a few individuals, and the way they decide to sell or hold effectively determines the available supply. If they hoard, prices rise. If they dump, prices fall.

Until they have unloaded a lot more of their stakes, we would need to see orders of magnitude of shifts in demand to offset the whales' potential for supply manipulation.