Price moves fast because what matters isn't how much of an asset exists, but how much is actually available to buy right now. When supply gets locked away and out of active trading, prices spike against the shrinking pool of what's left.
Price is not reacting to how much exists. Price is reacting to how much is accessible when buyers show up. And once assets move into those categories, they technically still exist, but they stop participating in daily trading activity. That gradually reduces the amount of supply that the market can access at any given moment. And when demand begins increasing against a thinner and thinner pool of available supply, That's when price behavior can start to change quickly because availability became constrained. And once you understand markets in those terms, you realize something very important: price is not reacting to how much exists. Price is reacting to how much is accessible when buyers show up. Let me know your thoughts in the comments and subscribe for more.
