To moon Bitcoin we need to consider how supply is spread out. We have some in cex, some on chain, some being held in hot/cold wallets, some being used as collateral for loans, and there are probably a few other places it hides.
We also need to consider psychology.
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Bitcoin maxi hate alts. They hate tokens even more. They believe that these are abominations that shouldn’t exist for the most part. Their disinterest can be an advantage, although support is nice. It creates a blind spot. They evangelize but don’t know the whole landscape.
Institutions are generally cex lurkers. They talk to otc desks, look at cex order books, and trade etf. Again, they’re not really aware of or interested in on chain activity. Blind spot grows.
The cex orderbooks get stacked with orders, ceilings are made, and the sellers don’t really have a reason to move their targets up, because they are creating enough resistance to keep it down… but this is just on cex.
On dex, it’s a little more tricky to suppress price, and you need to be comfortable with the risk of wrapping Bitcoin and put it in dex lp, or trading it on dex. Small piece of the pie is willing to do that, the rest stay where they fee safer.
As a result, there isn’t a ton of wrapped Bitcoin on some chains, such as Solana. There’s even less in lp. Last I checked, there is only about 50 wbtc in lp on solana. That’s not a ton… 3.3k wbtc minted… also not a lot.
My token $Satfi is paired with wbtc as the primary lp, and as price goes up, it sucks up wbtc supply. That wbtc has to come from somewhere. It comes from the wbtc that is in the other lp across the chain. Buy pressure is added, and in theory it should make price go up.
Remember the people on cex creating ceilings because they don’t believe price can go higher? Well if we can push price up on dex, they might change their minds… they might choose to wrap and bridge it over to take advantage of arbitrage opportunities too, moving supply off cex.
Now the orderbooks on cex have competition. The ceilings they made might be too low now. The people trading on those other platforms need to reconsider their targets and strategy. The strength of resistance begins to weaken.
It’s like playing pool. You transfer momentum from the pool stick to the ball, then that ball transfers momentum to the next ball, and so on. The goal is to get the balls in pockets, and off the table.
Once we have less balls on the table (less supply available) things can get more interesting. Price can move more. There is more trading opportunity, which attracts traders. Value is a mass delusion. People only need to believe.
$Satfi is going to moon Bitcoin
Believe
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