I was wondering about the rest, but was too lazy to look it up, so thanks for the info.
What does it mean? It means that there is so much MORE money in cryptos than we we thought. If BTC was the only crypto it would be easily at 100K or even 200K, but since there are multiple choices, that takes away capital from it. Nevertheless, plenty of money pouring into cryptos.
I used to do a simple math, assuming miners sell X% of their freshly mined coins right away. X is not known, so we have to guess. Nevertheless, the new coins coming into the market multiplied by the current value is the amount that has to come in EVERY DAY just to keep the price up. Otherwise more coins coming in, constant selling, price dropping. But to get a correct picture of the incoming money, we have to use not just BTC for this calculation, but probably the biggest 10-15 other cryptos. That means a truly large number, probably 100 million bucks or way more. That is just to keep the price floating. And more is the current value, the more money has to come in to keep the price up (assuming miners sell the same X% as price goes up).
Now if this assumption is true, there has to be a limit where investment money simply can't keep up with the growing valuation, and since still more new coins coming in, price has to start to drop. Or at least some of the other cryptos' price, as investors switching between cryptos.
If miners lower their sold % as value grows, this is not a problem. I really don't know miner's psychology, if they are horders or instant sellers. But if they are horders, they are also more likely to cash out quickly at any sign of weakness, after all they do have bills to pay.
Anyway, an interesting experience, for sure.
