Bitcoin Enters Full-Blown Bull Market as On-Chain Analyst Willy Woo Highlights Supply Reduction and Spot ETF ‘Remedy’
On-chain analyst Willy Woo believes that Bitcoin’s current market structure is indicative of a “full-blown” bull market. He points to several factors that support this claim:
- Bitcoin’s price is “ripping” and many coins are being moved on-chain, suggesting real investors are buying Bitcoin at higher prices.
- The approval of spot Bitcoin exchange-traded funds (ETFs) serves as a solution for “toxic paper BTC,” which refers to derivatives that represent BTC but do not involve actual ownership.
Woo also draws attention to the upcoming Bitcoin halving, scheduled to occur on April 18th. This event will reduce BTC inflation to less than half that of gold, making Bitcoin the hardest money in history.
Bitcoin’s Bullish Market Structure
According to Willy Woo, Bitcoin’s current market structure shows clear signs of a bull market:
- Bitcoin’s price is “ripping,” indicating strong upward momentum.
- Lots of coins are moving on-chain, suggesting genuine investor activity.
- Newly approved spot Bitcoin ETFs act as a remedy for “toxic paper BTC.”
The Impact of Spot ETFs
Woo explains that spot Bitcoin ETFs help address the issue of “toxic paper BTC.” Here’s how:
- “Toxic paper BTC” refers to derivatives that represent BTC but do not involve actual ownership.
- The flood of these derivatives seen in previous cycles is now receding, which is bullish for Bitcoin.
- In the bear market of 2022, spot investors continued to buy, but the price crashed due to an influx of paper BTC.
- In contrast, the reduction in spot supply and paper BTC in 2023-2024 is a positive development for Bitcoin’s price.
The Bitcoin Halving
Woo also emphasizes the significance of the upcoming Bitcoin halving:
- The halving is scheduled to occur on April 18th.
- After the halving, Bitcoin’s inflation rate will drop to less than half that of gold.
- This makes Bitcoin the hardest money in human history.
Bitcoin’s Price Performance
At the time of writing, Bitcoin is trading at $72,367. Here’s how its price has performed:
- In the past 24 hours, Bitcoin’s price has increased by nearly 4%.
- In the past week, its price has risen by over 7.5%.
- Since the start of 2024, Bitcoin’s price has surged by almost 64%.
Hot Take: Bitcoin Bulls Are Charging Ahead 🚀
On-chain analyst Willy Woo’s observations suggest that Bitcoin is currently experiencing a full-blown bull market. The combination of a surging price, increased on-chain activity, and the introduction of spot ETFs indicates strong investor interest and confidence in Bitcoin. Additionally, the upcoming halving event further solidifies Bitcoin’s position as a store of value. As the supply reduction takes effect and BTC becomes even scarcer than gold, its status as the hardest money in history is reinforced. With these factors in play, it appears that Bitcoin bulls are charging ahead towards new heights.
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