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).