Popular on-chain analyst and market commentator Willy Woo has revealed that in this market cycle strong BTC holders are accumulating at an “unprecedented” level as a large number of coins are moving from short-term holders to long-term holders.
In a tweetstorm, first spotted by Daily Hodl, Woo pointed out using Glasnode data that over the last few months long-term BTC holders have been accumulating as much as possible, which suggests that this bull cycle is “different” from bitcoin’s other bull runs, which ended in significant market crashes.
The analyst pointed out he believes that there is “no way we are entering a bear market” in the near future – something he says now looks obvious from market sentiment and price action, but wasn’t as clear two weeks ago when the “sky was falling.”
Moreover, the analyst suggested that BTC moving to corporate treasuries was likely also making an impact on the market. The Grayscale Investment Trust, he said, now accounts for 3.5% of the supply and only allows for BTC inflows into its cold storage, as when shares are traded the coins themselves don’t move.
Woo also noted that the leverage market grew in size over the last few years and allow for traders to speculate while moving a smaller amount of coins. He also pointed out that bitcoin’s use moved from a currency to a store of value.
As CryptoGlobe reported, earlier this year Woo said bitcoin could flip gold’s market capitalization. The price of bitcoin would have to reach $240,000 for the cryptocurrency to overtake the precious metal’s market capitalization.
Earlier this month, Woo suggest that the price of bitcoin could, based on a top-cap model of his, trade “anywhere in the $300,000 to $400,000 range” or “even higher” by December.
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