This paper by Lyn Alden and Steve Lee would disagree. https://github.com/bitcoin-cap/bcap/blob/main/bcap_v1.0.pdf
Discussion
Yeah, that's something I found a little strange.
Think about it this way: if hodlers try to dump (sell significantly below what most people are willing to pay), what is to stop a trader from buying those cheap coins and reselling them at whatever rate the market will bear?
As long as there is demand for the dumped coins, arbitragers are incentivized to buy and resell to the level of demand as fast as they can (before the dumper stops giving them free money).
Any coins sold at lowball prices simply become new coins being sold at the highest level people will pay (the market price).
Explain how a hodler or an investor or even an economic node selling a fork coin can achieve lower prices than people will pay?
If a significant amount of Bitcoin is held by individuals and they choose to sell Blackrock fork then BR fork price goes down. It’s as simple as that. Like every other asset, good, etc. A mass of people selling something because they don’t want it makes the price go down. Think about Europe selling (or even not buying) silver in the late 19th century in favor of gold, silver price went way down relative to gold even though Asia bought that silver. There needs to be reservation demand, market making alone can’t sustain a certain price. This stuff about arbitrage doesn’t mean anything, nothing unique to Bitcoin or forks.
If the price of a thing goes down, it is because people are not willing to pay for the thing -- not because people are offering it for sale.
> a mass of people selling something because they don't want it makes the price go down.
What are they selling it for? If people in Asia traded silk or opium for silver, did that make the price of silk and opium go down when they sold it?
If not, why isn't their act of not wanting silk or opium equal to European's act of not wanting silver?
If it did make the price of silk or opium go down, why did Asian selling gold (which Europeans were buyinh) not make the price of gold go down?
Finally, if Europeans traded silver directly for gold from Asians, why wasn't the Asian selling of gold acting on price exactly the same way as the European selling of silver?
You’re talking yourself into circles. I can’t help you any further. Read more Austrian economics.