Don't forget there is a reason for people to hold, and that is all the other good qualities that makes the crypto good money. The hodlers look into the future, and expect other people to be users when they understand the advantages to themselves.
The demand to hold is not an exact number, it is how much do someone want to hold at a certain price, it is a set of vectors. You can get a picture of it when you display the bid and ask curves on an exchange, but there is also a lot that you don't see, those who prefer to not put up orders, but wait until an offer is to their liking. Then you must take into account that the curves change all the time.
The ask curve, or supply curve, is just people who want to hold less, so you can regard it exactly like less demand.
This simple model works only with money, which by definition is neither consumed nor produced (actually fiat is produced, gold is produced and consumed, but in small amounts compared to the existing stock of money, so we can disregard it).
Yes, the above " look into the future, and expect other people to be users when they understand it too." is by definition financial speculation, and it is phrone to bubbly behaviour. The traders (all money users) have little to go on except yesterdays prices (measured in other things, other money and stuff), and for bitcoin, the soundness and ease of use, which is how it competes with other money.
This is exactly how people behave, it works even if not everybody (few) understand it, they only see good money for themselves. This is the opportunity for speculators.
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source https://www.reddit.com/r/btc/comments/b50q3e/did_you_just_say_when_people_hold_price_rises/
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