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/biz/ - Business & Finance


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52571357 No.52571357 [Reply] [Original]

the market can finally pump in peace

>> No.52571827

Here's my thinking, and correct me if i've misunderstood.
FTX was doing false trading. They didn't have nearly as many coins as they claimed to have. That means there were "fake" coins in "ciculation" on FTX, which increased the imagined supply of coins.
Now that FTX is gone, the amount in circulation should be closer to the real number, right? Which means lower.
Lower supply generally implies higher price.

But at the same time, this has undoubtedly also made a lot of people more sceptical of crypto in general, meaning many people are less likely to invest, and more likely to sell their holdings. Which of course brings down the demand, thus the price.

Imo, the current fluctuations in the marked is somewhat like a battle between the force of the new "lower circulation", and the new lower trust.
I don't know which force is strongest, but it is food for thoughts