This isn't accurate. Dwindling supply in the face or rising demand pushes prices higher, economics 101.
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This isn't accurate. Dwindling supply in the face or rising demand pushes prices higher, economics 101.
Your point assumes the demand is rising, but it isn't... The demand has existed for a long time, recently it has just moved from inside exchanges to OTC.
Like I have said long time ago... The demand is either flow towards other cryptocurrencies or towards cashing out... The demand is never towards HODLing even if some account holders like to HODL some of their coins.
Demand doesn't even have to rise. Static demand in the face of shrinking supply still sends prices higher.
BTW, demand for bitcoin is absolutely increasing.
Like I have said earlier during last 6 or so months focus has shifted from Bitcoin and Ethereum to Litecoin and Dogecoin... That means demand of Bitcoin has dropped.
One of the reasons is sharp decrease in number of altcoins and value of some of the remaining altcoins dropping to sub-satoshi levels.
The other big reason is that people don't need to swap their FIAT to Bitcoin first anymore as services like Coinbase support other coins too... People save a lot when they don't have to pay large network fees commonly associated with Bitcoin.