Question #138 ·
What do changes in Bitcoin's circulating supply and market cap indicate about investor confidence?
- Slight supply growth alongside shrinking market cap suggests waning investor confidence gradually Right answer
- 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.