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Yeah in the short run it may it might cause a little more downward pressure, however more trading volume is good for the market, and those that sold high would ten have more cash available to buy back the dips, causing a positive feedback loop. More volume the better for trading altogether.

I'm not sure about that. Look at e.g. ETH. The more people lock in their in ETH 2.0, the less there is available for trading. When there is demand, and not a lot of supply, prices go up.

If this happens, then the hive will go down and come up.