BTC Liquidity

[grahame77]

   Hi BTC fans

As it stands today on CMC the Bitcoin market cap is   $71,019,741,445 and 1BTC is   $4288.69   when total 16,559,775 BTC mined. Assume that market cap is calculated by 16,559,775 BTC mined multiplied by 1 BTC price $4288.69. Now lets assume scenario where there is more sellers than buyers on market so at 3500$ we get the equilibrium between sellers and buyers. The market cap would be somewhere at 57,000,000,000. What intrigue me that marketcap doesnt show how liquid the market actually is? How could someone say how deep is liquidity and how many coins should be dropped in order to dry the cash out of BTC? What effect would  made 250 000 BTC sold at once? Can someone predict the price of massive dump of BTC. Would 250 000 BTC coins sold on market at once push the price to 5$/BTC? Is this possible?

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[TheQuin]

No, it's not possible to know that. You would have to know the amount of money sitting on the sidelines waiting for a dip in the price to buy. The same applies to any market, the market cap doesn't really tell you anything about demand or possible future demand.

[hersey27]

The liquidity of btc somehow cannot be easily explained ,learned and define but still somehow there are some websites that can help you have researches about it.   Another way is the way and percentage of its selling rate ..

[dothebeats]

The marketcap doesn't show the total number of coins being traded all at once; your best bet is to get all the volume in different exchanges and add them up to get a pretty good hint of what's being traded at the current time. Also, are you aware that not all the 16 million coins are being traded and a good chunk of it is already lost in the void? There's too many factors that affect the prices, and take note that not all prices in different exchanges are all similar since they follow their own market independent of the others.

[shan05]

That is not possible at all i think. No one can predict liquidity of btc. You may compare graphs from site to another,  but cannot exactly know how it will move. Still depends on thethe market.  The demand and the supply. That is the one unique characteristic of btc.