On-chain analyst expects Bitcoin price to skyrocket due to the impending supply shock

Popular Bitcoin analyst Willy Woo has predicted that a potential supply shock for Bitcoin could send the price of the flagship cryptocurrency up in the near future, as long-term Bitcoin holders have amassed coins while short-term holders have sold.

According to Woo, as Cointelegraph reports, the proportion of Bitcoin held by long-term investors is growing as they actively absorb selling pressure from investors who have been selling their cryptocurrency holdings since February.

For Woo, the incoming offer could be as tough as one that “went unnoticed by the market in Q4 2020”. At that time, Bitcoin price began to rise, rising from around $ 11,000 to a new all-time high of $ 64,000 earlier this year. Woo said:

Experts debated whether BTC would be an inflation hedge in a post-COVID world when the data suggested long-term investors were piling BTC at a rapid pace. The price then collapsed and very quickly decoupled from its close correlation with stocks.

Data from on-chain analytics firm Glassnode shows the Bitcoin network is adding 32,000 users every day, a level not seen since January 2018 when it added 40,000 users a day ahead of a year-long bear market.

Woo noted that this time around, things are different as “new users take this opportunity to buy the dip; they come at the highest rate seen in 2021. ”The analyst reportedly predicted that Bitcoin price could reach $ 200,000 by the end of this year, even after giving his BTC price prediction of US $ 400,000 -Dollars had lowered.

Earlier this month, Willy Woo announced that he had seen signals suggesting that user growth on the Bitcoin network is now “close to an all-time high,” even though the price of the cryptocurrency is between $ 30,000 and $ 40,000.

DISCLAIMER
The views and opinions of the author or the persons mentioned in this article are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading in crypto assets carries the risk of financial loss.

IMAGE CREDIT
Featured image via Pexels

Comments are closed.