The caps are based on the last buying and selling prices multiplied by the total number of shares or units. Like you said “not” total dollars invested.

You are right. If there are a bunch of buyers clicking buy with no sellers this can cause a market cap to rise fast.

It works the other way also.

Crashes - if there are 5 sellers panic selling with market sell orders and there are only 1 buyer on the other side this will do heavy damage to a market cap.

When I first learned this it kind of blew my mind a little about how the markets value a company or commodity etc.. and how pricing can fluctuate so widely and quickly.

Sorry to come in here late as an outsider. Does anyone here do any price charting of Bitcoin or follow anyone who does? Any recommendations? Don’t really need permabull why one should buy and hold info, but more analyst type charting folks following price for possible 2022 price swings to know when to possibly add or lighten.

Any recommendations are appreciated. Thanks in advance.

Thank you! Will check it out. I use charting for stocks as a reference and it helps me and I was wondering if and how the same type of methods apply to some of the higher traded and held coin?

For the stock side this is one analyst I use who gives good insight on overall SaP stock market direction if anyone is interested. He has a service that I subscribe to but his free articles are all that most need. I get no referrals by the way. As we know nothing is 100% and chart folks adjust and because of this are not too wrong if they are wrong. It’s a good market “reference” IMHO. Helped me get out of 2020 looking good. I am now concerned about the “big drop” which may come in the next few years.

https://seekingalpha.com/article/4478608-sentiment-speaks-are-we-ready-to-drop-to-4400spx#comment-91170407

Speaking of stock drop I do wonder how Bitcoin or Ehthereum etc will do during and after a large 2008 type stock drop. We may find out within the next few years unfortunately and I do hope I am wrong about this. I want to learn more about crypto pricing for possible entry points, so asked about charting. As I know I just have some GBTC holdings and I do know that is not an ideal way to hold Bitcoin.

Thanks for those who shared links.