Great question.

It’s an economic term for a certain type of product, that breaks the standard supply/demand thesis, ie when price goes up demand decreases, so supply eventually has to reset to the new status quo of lower supply volume than before

With a Veblen good, eg a niche luxury handbag, people’s demand goes up, the more expensive it actually is, ie they specifically want the item because it is the highest price

Bitcoin behaves in a similar way, largely because supply cannot change, so as the price rises, demand will rise as well. A 2 trillion dollar asset class is able to absorb capital from large institutional players in a way that 500 billion asset class cannot

So the big players actually want the Bitcoin market cap to go up. So they can allocate in larger size, with better liquidity