The value of Bitcoin can actually shoot up if the Bitcoin is scarce.

[coolcoinz]

Scarcity of bitcoin combined with rising number of holders will eventually increase volatility. The imbalance between traditional assets and bitcoin is just too big.

 For instance, imagine that there's just around 2.5m BTC available on exchanges right now, but there are many billionaires. What if a few billionaires decided that they want to buy $500m? That would be what? 5k BTC each? The entire daily volume on Coinbase is $250m, so a single billionaire buying spot bitcoin could easily double the volume of the largest exchanges, leading to supply shortage and very high prices.

Bitcoin at this point could easily go to $300k in 24h if someone rich like Bezos or Musk wanted to pump it.

[peter0425]

The theory of demand and supply if applied will make Bitcoin price shoot up.

You don’t need to use the word ‘if’ here because that’s exactly what’s happening. Bitcoin’s supply is limited and there’s only so much you can buy before others start buying as well. The more people buy, the higher the price becomes. The higher the price becomes, the more people wants to invest. So it just keeps growing.

[odolvlobo]

So if the Sellers create artificial scarcity in the Bitcoin market by holding the coin and the buyers are surplus then the price will shoot up. So let the Bitcoin sellers create artificial scarcity in the Bitcoin market.

A flaw in your thinking is that holders of bitcoins gain no benefit from those bitcoins until they sell them.

Holders cannot not both create artificial scarcity and realize gains at the same time.

Now, suppose there is some coordination of holders, and they agree to refrain from selling in order to drive the price up. They will have to sell at some point to realize their gains, and this selling will drive the price down. So, buyers knowing that the price will eventually fall will also refrain from buying until the sellers start selling. The result is that the artificial lack of supply is matched by an artificial lack of demand, and the price doesn't rise as holders expect.

In the end, there will always be sellers.