According to Matt Hougan, the Ethereum (ETH) price has been experiencing sideways and downward movement because new supply is closely matching market demand (source: Matt Hougan). The Ethereum network produced a net 543,000 new ETH, which effectively met the level of demand from investors and users (source: Matt Hougan). This equilibrium between supply and demand is identified as a key reason for the lack of positive price momentum for ETH, providing a fundamental explanation for its recent price performance from a trading perspective (source: Matt Hougan).

According to Matt Hougan, a significant supply and demand imbalance has developed for Bitcoin (BTC) since the introduction of spot ETPs in January 2024. The analysis points out that ETPs and corporate treasuries have purchased 1.5 million BTC in that timeframe. In contrast, the Bitcoin network has only produced 300,000 new BTC. This indicates that demand from these entities is five times greater than the new supply being mined, which is a key bullish fundamental for traders to consider.

According to Matt Hougan, Ethereum (ETH) could experience a significant supply shock over the next year, potentially driving its price higher. Hougan forecasts that Exchange-Traded Products (ETPs) and corporate treasuries could generate demand for $20 billion worth of ETH, which translates to approximately 5.33 million ETH at today's prices. He contrasts this with the network's expected new issuance of only about 0.80 million ETH over the same period. This analysis points to a potential scenario where demand is nearly seven times greater than the new supply, suggesting a strong bullish case for ETH's valuation from a supply and demand perspective.

According to Compounding Quality (@QCompounding), shifts in supply and demand are key drivers of price movements in all markets, including cryptocurrencies. When supply of a coin like Bitcoin increases while demand remains constant or falls, prices typically decrease; conversely, rising demand with limited supply can lead to price surges. Traders should closely monitor on-chain data such as exchange inflows and outflows, as well as wallet activity, to gauge real-time supply and demand changes that directly affect short-term and long-term price action. These fundamental market mechanics remain central to trading strategies in the volatile crypto sector (source: Compounding Quality on Twitter, June 9, 2025).

According to Crypto Rover, Bitcoin exchange reserves are dropping significantly, signaling that fewer coins are available for sale on major platforms. This sharp decline in reserves, as documented by Crypto Rover on Twitter, indicates increased accumulation and potential supply constraints, which have not yet been reflected in current BTC price levels. Traders should closely monitor on-chain data and exchange wallet flows as this trend may precede heightened volatility or upward momentum if demand persists. Source: Crypto Rover (@rovercrc) April 26, 2025.

According to CrypNuevo, the cryptocurrency market demonstrates manipulation, deviating from organic supply and demand models and being influenced more by retail traders' liquidations and stop losses. This highlights the importance of tracking liquidity for effective trading strategies (source: CrypNuevo).

According to Trevor.btc (@TO), if no one sells their cryptocurrency holdings, the price must go up. This statement highlights a fundamental market principle where limited supply with persistent demand can lead to price increases. However, the actual market behavior depends on various factors including buyer interest and market liquidity, which are not guaranteed to remain consistent. Therefore, while the concept is theoretically sound, practical applications require careful analysis of market conditions and participant behavior.

According to The Kobeissi Letter, the influx of bonds into the market has led to falling bond prices and rising yields, an effect attributed to basic supply and demand dynamics. This trend has resulted in real yields moving higher consistently since 2022, indicating that inflation is not the primary factor driving the recent increase in rates.