Posted 11 months ago | by Catoshi Nakamoto
Bitcoin analyst Willy Woo has said that the number one digital asset is about to go through a supply shock.
Woo urges traders to take a close look at the flow of BTC to and from crypto exchanges.
Woo says despite ongoing sideways price action, investors are buying coins on exchanges and sending them to private wallets, making him very bullish.
“As price grinds sideways-bearish, coins are being scooped off the exchanges at a very bullish rate… The latest sizing of withdrawals vs deposits are at local highs at levels that signal a bottom, whales are scooping,” Woo said.
Woo states the numbers imply a supply shock is underway, with demand for BTC steadily outpacing the amount that is actually available on the market for sale.
“Here’s another view of it, in terms of supply shock. The ratio of coins available on exchanges vs total supply (inverted so it tracks price.)
Quantitative supply shock underway. Last time I saw this, it took some time before price bounced (Oct 2020); it bounced hard,” Woo tweeted.
This is why institutional investors are trying to shake out retail traders so they can drive the price higher and then sell to retail investors. In fact, this plan is laid out quite well in a recent article Bitboy Crypto published entitled: “BULLISH: 70% Of U.S. Banks And Credit Unions Can Now Purchase Bitcoin For Customers Through NYDIG And Fiserv.” Yes, this is bullish for the price, but banks want NYDIG to custody Bitcoin so customers don’t have to go through exchanges. More so they want people to not have private wallets where they themselves own the cryptocurrency.
To put it simply, old money wants to coop new money and in some ways they already have. We have been telling you for months, don’t sell your Bitcoin, Ethereum or Cardano.
In Woo’s opinion, the Bitcoin market is strong fundamentally, he added, that he wouldn’t want to be caught shorting this market.
“In my opinion anyone short this market will get rekt given enough time. It’s just a waiting game until the fundamentals prevail,” Woo said.
According to Woo, the incoming supply could move the market as hard as when it “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.
“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.”
Max Keiser a Bitcoin bull and BTC maximalist has previously discussed a supply shock. Hate him or love him Max explained at the time, he believes a supply shock will fuel Bitcoin’s sudden rise to $1 million, making it “almost impossible to buy bitcoin as price rockets higher.”
Last year before Bitcoin broke $20K in an interview with Express.co.uk, the host of the Keiser Report and Orange Pill Max Keiser said at the time that he was convinced institutions will find a way to purchase Bitcoin directly from miners and begin pushing out retail investors.
“The demand for Bitcoin is growing almost exponentially while supply is mathematically locked at 900 a day and in fact, in 2024, the supply gets cut in half again to 450 a day.
This is why I think institutions that are buying bitcoin will do so directly from miners and the public won’t have a chance to buy any. The public will be shut out as the price rockets to $1 million per coin… Meanwhile, Generation Z who bought lots of Bitcoin when it was under $100, will be the new global power elite. The world order is about to flip.”
Keiser also highlighted in a tweet that PayPal’s new support for Bitcoin alone is more than the daily supply of BTC being mined. This means if Paypal alone is sucking up the daily reward supply for BTC, roughly 900, there won’t be enough for institutional investors to buy, as a result, the price would surge due to supply versus demand.
Bitcoin is currently trading at [FIAT: $32,632.61] DOWN -2.3% in the last 24 hours according to Coingecko at the time of this report.