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Lets say that $1B worth of money is going in to bitcoin and its current market cap is $100B. How much would the market cap increase with that $1B?

Would it go to $101B, $105B, $110B, $100.1B?

I know that it will change according to how the money is put in. If they find someone selling by hand locally than it wouldn't affect the market price/market cap at all.

But I'm more curious on the average of the increase? I'm guessing there is a formula for it in finance? What is it?

  • It's not clear what you mean exactly. When you say "$1B worth of money is going in to bitcoin", do you mean that some bitcoins change hands for $1B? If so, why should that push the price up rather than down? Every time someone buys, someone else sells, right? – David Schwartz Apr 22 '18 at 18:32
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Given that the Bitcoin market is pretty unstable + unregulated I don't think it is possible to predict the outcome of this.

Have a look at the paper Price Manipulation in the Bitcoin Ecosystem by Neil Gandal et al. to get an idea of why this is very hard (if not impossible) to predict.

  • Maybe it is, so is there a formula for similar assets? – demiculus Apr 18 '18 at 13:09

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