There are many reasons why bitcoin and other coins price is where it is. When the price either directly or indirectly influence the marketcap the price either rises or fall like the current situation. These are factors that influence the price; source: Crypto Update
2. Total Supply of the coin
4. Circulating Supply:
Why include supply and circulating supply of bitcoin? What matters is just the circulating supply. Although it is good to let people know how bitcoin he a limited supply.
Then lastly, For bitcoin price it doesn't work that way if you think of the demand currently the bitcoin total supply is extremely low yet the price dropped to $18k from it previous of $68k. Now tell me was it the low demands or higher supply that causes it?
No, because if i may get it correctly is a season that remains constant that can not be changed in the cryptocurrency market at large that effectualized the trading circle.
Any of you may correct me if i am wrong, although what you said only works in some cases but not with bitcoin entirely
The higher the demand the higher the price is what the OP is talking which k see to be very correct. When the price of bitcoin decreased from all-time-high to a lower price, it was because more people were selling than those that were buying and the price of bitcoin fall. But I will say that OP discussion about supply is not that accurate because how the price of bitcoin is increasing and decrrisnmore responsible by demand not supply. Although supply is also important s the OP included it in the price calculation and as it is limited and there is currently circulating supply of bitcoin.