Topic: Btc Are limited supply and people Are withdraw them from exchangers - page 2. (Read 236 times)

Storing funds in the exchange has never been safe, and it will never be safe. In that case, we can simply learn from the past experience. The cause is collapse. Bitcoin is only for panicking. When something awful happens in the crypto space, people panic and begin selling. You can see the issue with Luna, which has crashed the entire crypto market, as well as the issue with FTX, which has also crashed the entire crypto market. In such cases, people seem to prefer to liquidate their cryptocurrency. As a result, there would be a massive sell, which led to a massive dump.

bitcoin might have a 19m limited supply this year. but those 19m are not on exchanges

lets say 4million are
exchanges might have limited supply of 4m but not all of those are on active market orders

lets say 2m are (binance only 400k btc in custody and has les on market orders)
market orders might have long order books of XXXk btc. but the price is only based on the current decimal amount of btc being sold at any specific time

yep thats right the market price is only based on the decimal amount of btc being sold at a given time

people are not depositing $16k to buy a whole BTC (like they have to to buy whole fiat company shares). people can buy small allotment of decimals using lower fiat amounts

exchanges can trad 0.0001 for $1.60  and the market price still calcuates to being $16k for 1btc

so even without much "supply" in an exchange. market makers just swap less decimals.

in 2012 the buyers depositing $400 and could get 66btc
in 2022 same person does not deposit 2500 x $400 to buy 66btc
investor still puts in his regular $400 and only gets 0.025btc

we seen in 2012 that walls (large orders that didnt fulfil) were 1000btc thick. now they are 1btc thick

..
though in 2012 the entire bitcoin network coin circulation supply was 11m coins
and now its 19m coins (more supply)
the market supply on active orders went
from  1-1000btc per order line
to 0.001-1btc per order line

Actually this a normal phenomenon you will see during the price breaks. If you see in past whenever btc price falls, traders do withdraw their coins in private wallets many people even trade based on this data using cryptoquants. But I think so far the sample space for this data is pretty low. I have seen many times this metric of Bitcoin exchange reserve ratio falls and yet price keeps on falling as well. So not very sure if this is the right indicator to judge or not.

It seems to be stable at 20.000 until FTX. Panic sells thier BTC. There is still fear that BTC will fall because the contagion as they call it is still there. If it doesn't fall despite the next domino falling, I guess no one sells anymore but just those fraction that we see right now. Been observing for hours the biggest I saw on the orders was 0.5BTC.

Price is going up not if there is more or less coins on exchanges. Price is going up when people are willing to pay more for coins and are buying on the rising price. The end. Number of coins on exchanges does not matter. People can always deposit back in or hedge using futures and leverage when price recover.

Current situation makes people withdraw not only BTC but also stable coins and fiats. So there is less money to buy fewer coins. Net impact is neutral but ... it all cause lower liquidity on exchanges = more volatility = more risky asset = more fear = fewer investors = price goes down.

Exchanges should never go beyond what they have their own reserves, but they do. That's the real problem here. However, I'm quite sure what you're trying to get at here. Although, I wouldn't exactly describe the price of Bitcoin stable, literally ever. It's known for its volatility, and to some extent that's by design for now.

What's for certain is news like FTX isn't exactly great for consumer confidence, especially when we're trying to convince people that Bitcoin is a better alternative to fiat.

Quick reminder that people withdrawing from exchanges doesn't automatically mean most of them are withdrawing their bitcoin to their own non-custodial wallets. It could also mean that people are selling bitcoin for fiat then withdrawing to their bank accounts (or for stablecoins, and to their MetaMask wallets).

Btc Are limited supply and there is fear on the Market everybody or most will think the fear make holders to sell.
But now AS people Are afraid bit to hold their coins on exchangers it creates exchangers shortages of coins.
I guess thats the reason why btc price quite Stable the supply and demand Even If traders are bearish in fear the funding balance stays negative still on exchangers.
So current ftx case making people more often to withdraw their assets out of exchangers.

Situation looking clear for me it seems to me that exchangers now out of coins and that triggers price up not other way around that people accidently think that current fear situation making crypto to go down the exchangers dont see our emotions but buy sell orders and supply and demand.

We have situation now when many traders holders will withdraw their coins in private wallets.