Two opposing forces:
- Downward pressure: bigger market caps drags price action, as more money inflow is required to move the price
- Upward pressure: every day the S2F holds, it gets stronger and stronger, so future appreciation gets discounted into price, providing a lift to prices.
Its a battle.
👇 👇 👇 someone send merits to this men. I am dry.
I didn't look at this as simple as that, but you quite nailed it, imho.
You can see the increasing linear spread of market cap and price figures, for example on coinmarketcap graphs.
The more BTC get's recognized as what it is, the more inflow acceleration will occur as a logical result.
But i'm uncertain how increasing inflation will influence the latter. In critical times, people tend to fall back to traditional solutions, namely gold.