The Impact of “Paper BTC” on Bitcoin’s Supply Shock
An analyst named Willy Woo has provided insight into how the growth of “paper BTC” is counteracting the bullish supply shock in Bitcoin. “Paper BTC” refers to the combined value of futures open interest. The analyst explains that while the real supply of Bitcoin is becoming less liquid, the increase in paper supply is compensating for it.
Comparing Real BTC and Paper BTC
A chart illustrates the trend in the ratio between real BTC and paper BTC over the past few years. This shows that the effects of the supply shock are being offset by the significant levels of paper BTC.
Bitcoin’s Price Decline
In recent days, Bitcoin has experienced a significant drop in price. It has fallen below the $27,000 level and is currently hovering around $26,500.
Hot Take: The Impact of Paper BTC on Bitcoin’s Supply Shock
Analyst Willy Woo highlights the growing presence of “paper BTC,” which refers to futures open interest, as a counteracting force against a bullish supply shock in Bitcoin. While the real supply of Bitcoin becomes less liquid, the increase in paper supply compensates for it. This trend can be seen through a chart depicting the ratio between real BTC and paper BTC over time. Additionally, Bitcoin’s recent price decline adds to this narrative. The influence of paper BTC should be monitored closely as it continues to impact Bitcoin’s supply dynamics.
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