Btc Are limited supply and people Are withdraw them from exchangers

[Tytanowy Janusz]

I'll add that less coins on exchanges is always good. Think of it like this:
More coins available for sale > bigger sell walls > more fiat needed to break into higher prices
Less coins > much easier and more frequent short squeezes > higher possibility of price manipulation but also higher and more frequent pumps, wider price ranges.

Again. You are looking at supply site of equation only. There is also a demand site.  People are not only withdrawing bitcoin but fiats too. So there are smaller sell walls but also less money to buy them.

Less coins > much easier and more frequent short squeezes > higher possibility of price manipulation but also higher and more frequent pumps, wider price ranges.
IMO more coins outside exchanges is good because it suggest more people self custody and as a result less coins being possibly lost or stolen. It's also better for traders because they're the ones that love volatility. I'm not a trader and I don't care if the price range is wider and btc goes up and down by 100% in a year. I've seen it in 2017, 18 and 19 and was fine with it. I kind of miss it now.

But traders like volatility that is predictable. Not random flash crash that whipe out stoploss orders and leveraged positions. I remember an interview with market operator that I was watching 3-4 years ago. Guy from big found said something like that - "If you want people to buy, create nice looking chart for them that fallows all rules, supports, trend lines. Make it a good place to draw lines and do technical analysis"

IMO more coins outside exchanges is good because it suggest more people self custody and as a result less coins being possibly lost or stolen.

Thats indeed a positive thing. Another one, even more imporatant, is less coins being a collateral in fractional reserve - https://bitcointalk.org/index.php?topic=5094088.msg49096584#msg49096584

[naira]

It seems that the current situation is starting to make people panic and take steps because of the things they are afraid of coming to dispose of them. Unfortunately, after this confirmation, we still haven't found the drop point. Do we need to watch out for this? Because based on the confirmed timeframes, we have yet to see a market response to the impact of such large shipments to exchanges.
   

https://whale-alert.io/transaction/bitcoin/0278254aa0d98a52c01da470e2cd859f004a9209829946c7fa869985d84d7cd7

[slaman29]

I'll add that less coins on exchanges is always good. Think of it like this:
More coins available for sale > bigger sell walls > more fiat needed to break into higher prices
Less coins > much easier and more frequent short squeezes > higher possibility of price manipulation but also higher and more frequent pumps, wider price ranges.

Again. You are looking at supply site of equation only. There is also a demand site.  People are not only withdrawing bitcoin but fiats too. So there are smaller sell walls but also less money to buy them.

I would add also that BTC is just a small portion of exchanges daily transactions, it's been long since I saw it in top 10 of Binance daily volume, in fact I don't think I even remember it at all this year.

And that just shows how much Bitcoin to me is really on the site, not so much because people aren't selling or buying but there are way too many pairs of other non BTC sets trading.

And when there is a run on deposits, for sure it is the same case that non-BTC currencies are being withdrawn, so agree, less money to buy BTC too.

[pooya87]

there are less coins per marker order in comparison to 2012 even though there are more coins circulating on the network. yet the markets are stronger in ways of volume and trade

the price is not measured by how many coins are in circulation matching how much fiat is in circulation.

the price is matched by someone buying 0.0001 for $1.60 which. by simple maths evaluates bitcoin to be $16,000/btc

The point is about market manipulation. A market with tightly packed order books that costs a million to cause a 0.1% change is a lot harder to manipulate compared to a market with thinly packed order books that costs a grand to cause a 10% change.

In your comparison with 2012 you forget another important factor which is the number of exchanges and their share of the market. In 2012 more than 85% of the volume was found on only one exchange called MtGox but today the biggest exchange can barely reach 10% of the total market volume.

there was still an underlying value line based on not markets. but mining cost that supported a $15k non-zero line

You are wrong because mining cost changes based on price not the other way around. It also is decided based on regional effects. For example home miners here that are mining bitcoin at a $0.002 per KWH have a far less mining cost than those mining bitcoin at $0.1 per KWH elsewhere. In other words the line you imagine does not exist.

[yazher]

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.

Yeah! right, they were caught red-handed when they did that and they are now suffering for the things they did. It's really hard to trust exchanges after this because they are not just like any other common exchanges because they are one of the biggest ones but they also failed to stay as positive and good as possible because their real colors have shown and the only people who are lucky are those who withdraw their funds just before the disaster hits FTX.

[Findingnemo]

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.

There is no possibility for shortage of bitcoin, because bitcoin supply is limited so users who deposited the funds to exchange should have the exact amount of bitcoins in their wallets so the deposit and withdraw should be tallied or else the exchange is involved in some how with shady activities.

Only hack on the exchange will result into the shortage for them and it if happens then probably the exchange will announce it publicly, traders can't trade via wallets so when we say trader they have to use the exchange for trading.

[NotATether]

How do you know that exchanges have a limited supply of BTC, when not all of them have shown us their proof-of-reserves?

And not only that, but it's displayed as a snapshot anyway, so it's possible an exchange claims they're liquid with a proof-of-reserves audit but right now they have much less reserves.

[Nrcewker]

Bitcoins are limited in supply and hence it is very valuable. I do agree on the fact that, we should store and hold it as long as we can, but there are some necessities come when people are forced to withdraw their money, so hence their streak of holding the currency breaks and they sell the coins that they are holding. The whole point of the post is to make people understand that, Bitcoins are limited , so when the demand of the coins will increase, the price will go high. So it’s not best to panic sell the coins.