How does Bitcoin’s market capitalization influence its price movements?

Bitcoin’s market capitalization (market cap) represents the total value of all BTC in circulation. A high market cap indicates widespread adoption and investor confidence, often resulting in more stable price movements. However, when Bitcoin’s market cap grows significantly, it becomes harder for new investments to cause sharp price increases. On the other hand, a lower market cap can lead to higher volatility, as fewer trades can have a significant impact. Investors use Bitcoin’s market cap to gauge its position relative to traditional assets and other cryptocurrencies. Real-time updates on Bitcoin’s market cap can be found at btc price live.