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Question #138

What do changes in Bitcoin's circulating supply and market cap indicate about investor confidence?

Category: General
Slight supply growth alongside shrinking market cap suggests waning investor confidence gradually
Supply changes have no relation to market cap shifts or investor confidence
Rising supply and stable market cap indicates growing investor confidence in Bitcoin
Declining supply with falling market cap reflects increasing investor confidence in Bitcoin

Why is this the correct answer?

This is correct because Bitcoin’s circulating supply rose slightly while its market cap remained around a trillion but declined with price drops. When market cap falls despite more coins in circulation, it often signals that investors are selling or hesitant to buy, reflecting diminishing confidence.

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