Good day, so there’s one thing that could be a bit complicated to me. I heard these guys speaking about how BTC’s value might double or triple in a single day if $100 billion got here in from some hedge funds for instance.
I get that market cap is the value multiplied by variety of shares. However, my query is how might $100 billion price of investments add $1 trillion to $2 trillion to the market cap?
For some motive I at all times thought if somebody purchased $10k price of a inventory, the market cap elevated $10k (which I do know doesn’t make sense now as a result of there’s not sufficient in circulation to justify the market cap costs we see in all these corporations/cryptos.)
TL:DR; How is market cap affected by buys of shares? If it’s not a $1 invested:$1 elevated market cap ratio, how is the market cap decided by every quantity bought?