Unfortunately, a vast majority of people have no concept of market cap. They do not understand that the price per coin is completely irrelevant.
This is why SHIB/DOGE have done so well. People think they are cheap. People think it’s reasonable for SHIB to hit $0.01. DOGE did it, after all!
Even with an understanding of market cap, human psychology makes owning 0.02 of something feel… unappealing and unsatisfying. Owning 5 of something feels much better. 1000 of something? Fuck yeah.
This is really harming Bitcoin. We saw it in March and we’re seeing it again. Retail investors are losing interest in Bitcoin because they see it as ‘too expensive’.
They think along the lines of; “to double my money with Bitcoin, it would need to rise by $60,000. I’d rather invest in ETH, as for that to double, it only needs to go up $4000, that’s much less!” – (Yes yes, a lower market cap does make it easier for ETH to double).
Everyone is targeting low price-per-coin cryptos because it feels more likely that they’re going to get +100%, and completely ignoring market cap.
The kicker is, that because so many people are thinking this way, it becomes true. All the retail hype becomes around SHIB and other low value coins, and hype around Bitcoin dies.
I’m sure many will say “retail money means nothing, Bitcoin is driven by institutional money now” but that’s really not true. Public hype is a massive boon to anything. If the public is raving about Bitcoin, then more institutions will want to get on board.
I think we’re going to see similar to what happened in March. Bitcoin will flounder around 60k for a few months. Ethereum will shoot up to new ATHs, and then it’ll all come crashing down.