On Wednesday (30 November 2022), popular and highly respected on-chain analyst Willy Woo shared his thoughts about Bitcoin during an interview with crypto analyst Scott Melker (“The Wolf of All Streets”).
According to a report by The Daily Hodl, Woo said:
“It’s that time in the cycle really that the accumulation does come in, right? People buy, they put a floor on the price, the volatility drops. And we saw that in the 2018 bottom, 2015 bottom. We even saw it in the 2012 bottom. So, yeah, sure, people are holding the price up because they want Bitcoin...
“What was really interesting with the BlockFi bankruptcy, we saw a sort of pullback. It went down beforehand. I kind of think that was inside sellers, knowing that the announcement would happen. It went down $500 or something like that and it got quickly absorbed. And then now we’re breaking to the upside. So I think we’ve got a lot of buyers at this price...
“Certainly, the indicators I have are showing when you see a lot of coins moving and the price going sideways that’s a sure sign of accumulation. So that’s been happening. I’m tracking it. That’s the reason why it’s going sideways.…
“$12,000 wouldn’t shock me. $10,000, I think everyone’s wanting and so it usually doesn’t happen what everyone wants. So $12,000 wouldn’t shock me, $12,000, $13,000. It may run away from here or it may drop even further. These are very broad-stroked indicators. But it’s probably not a bad time to dollar-cost [average] in.“
Back in September 2022, Woo said that the price of Bitcoin is being suppressed and manipulated by opponents via the futures market.
Woo made his argument in a series of tweets, in which he explained that the futures market for Bitcoin has opened the door for price manipulation. According to Woo, Bitcoin’s hard cap of 21 million $BTC can be circumvented via the futures markets, which Wall Street and hedge funds are using to control the price of $BTC.
Woo compared the launch of CME’s Bitcoin futures exchange to a “BTC casino where you could front USD to play.” He noted that Wall Street hedge funds have been the primary supporter of CME’s Bitcoin futures market, which removes the intrinsic hard cap on BTC’s supply:
“What’s the limits on selling BTC now? Unlimited. Fiat is unlimited.“
Woo compared the market cap of Bitcoin to USD, noting that $1.1 trillion in U.S. dollars has been printed over the last 12 months compared to $BTC’s total value of around $0.37 trillion.
The on-chain analyst continued, arguing that $BTC “doesn’t have to be killed,” but could instead die a slow death via shorts and price suppression. Woo argued that Bitcoin requires a large market capitalization in order to achieve its global impact.
He concluded by pointing to the U.S. Securities and Exchange Commission’s role in Bitcoin’s price suppression, including the regulatory body’s reluctance to approve and exchange-traded fund (ETF), saying it is “now a political game.”
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