How does market supply work?

Can you elaborate on how market supply functions within the realm of cryptocurrency and finance? Specifically, how does it affect the price fluctuations of various digital assets, and what factors contribute to shifts in market supply? How do traders and investors take these dynamics into account when making decisions in the market? Understanding the intricacies of market supply is crucial for navigating the complex landscape of cryptocurrency and finance, so I'm eager to gain a deeper insight into this topic.