Bitcoin Forum

Hello I have a neewiob question.
What does it usually mean , if market cap grows of an altcoin (stays nearly the same) , and the price of an this coin goes down? not talking any specific circumstances like growing btc or other,just in general.

Thanks

Haha I guess the answer is new coin emission , while market is being dumped.  ???

Bingo. This is why I avoid coins with still a lot of growth size in distribution. Basically inflation.

also consider the pumped team who's creating panics and shaking the project, I guess inside crypto a lot of things really influence the fluctuations
we cant rely only with market cap but always think that alt can be pumped and also can be dumped hard in returned.

actually market cap created by whales as a strategy for them to make a move,
with market cap a lot of newbies panicked or hyped.
some of them have a thought that when the cap is up the price should be,
and when the cap is down the price will down too.
but in reality we will see the opposite movement,it's obvious that the whales used that thing as an indicator to trick the newbies.
so they can shake the weak hands.

conclusion,don't believe what market cap said.just believe the project that you choose and yourself.
only you know what should you do and what will you get in the future.
be aware about this and stay awake

not exactly, you just talk the significance of arithmetic.

in fact, the price is nothing to do with the total volume, you just say the result rather than the reason.

basic mathematics can answer your question, you just have to know how market capitalization is calculated and i'll tell you how:
Market Capitalization = Price * Supply

Market Cap ↑ = Price ↓ * Supply ↑↑↑

That is the average happenings when the market cap is going up. If the market cap is going up then it means that there is a lot of demand that is coming in and if there is demand then the price of a coin will go up and if the price of a coin will go up then that is the time when the holders or bag holders will sell their coins to get some profit.

are you confusing market cap and volume?

That's not how it works mate. When a particular altcoin makes a huge marketcap, the price of this will surely going up. There's no way a particular altcoin which has gain a huge marketcap then it's price is dumping. If the marketcap cuts down, the price will surely cut down also. Maybe you see an altcoin which has a huge marketcap. But you see a the price is so cheap. Because of it's circulating supply. Example of this is Ripple. It has a huge capital but the price is cheap.

Yes, Ripple is doing this. They are dumping billions of XRP in the market while the price is falling and the funny part is their followers are so happy to catch the loss.