Popular bitcoin analyst Willy Woo has predicted a potential supply shock for Bitcoin could see the price of the flagship cryptocurrency surge in the near future, as long-term bitocin holders have been accumulating coins while short-term holders have been selling.
According to Woo, as Cointelegraph reports, the ratio of Bitcoin held by long-term investors is growing, as these are actively absorbing selling pressure from investors that have been selling their cryptocurrency holdings since February.
To Woo, the incoming supply could be as hard as one that “went by unnoticed by the market in Q4 2020.” At that time, it’s worth noting, the price of bitcoin started surging and went from around $11,000 to a new $64,000 all-time high earlier this year. Woo said:
Pundits were debating whether BTC was an inflation hedge in a post-COVID world when the data was pointing to long term investors stacking BTC at a fast pace. The price subsequently went on a tear, very quickly de-coupling from its tight correlation with stocks.
Data from on-chain analytics firm Glassnode shows that the Bitcoin network is adding 32,000 users every day, a level that hasn’t been seen since January 2018, when it added 40,000 users per day ahead of a year-long bear market.
Woo noted that this time things are different as “new users are taking this opportunity to buy the dip; they’re coming in at the highest rate seen in 2021.” The analyst, as reported, has predicted the price of bitcoin could hit $200,000 by the end of this year, even after lowering his BTC price prediction from $400,000.
Earlier this month, Willy Woo revealed that he has seen signals suggesting that the Bitcoin network’s user growth is now “near an all-time high,” even though the price of the cryptocurrency is ranging between $30,000 and $40,000.
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