Not true at all. The amount of liquidity on exchanges is mind-boggling small and the vast majority of Bitcoin isn't even in circulation. It wouldn't even take a quarter of that to pump up the price that far unless loads of hodlers give up and start dumping their old Bitcoin on exchanges.
Yeah. People tend to forget that it's just a fraction of all bitcoins mined which are actually "alive" and circulating. In reality, numbers we should be considering in practical sense of market cap are definitely a lot smaller.
Yes no doubt but this highly increasing price makes many of us to think of what is going to happen to the bitcoin in the future. Though it is circulating in the market but still there is something fishy. Also it cannot be surely said that the market cap that is said to be smaller is actually the smaller one as to be pretended as the bigger.