Early Investors Selling
On-chain analyst Willy Woo says that early Bitcoin investors, known as OGs, are selling their holdings in large numbers. These OGs hold more Bitcoin than all exchange-traded funds combined.
Paper Bitcoin
Woo also blames the futures market, or “paper Bitcoin,” for exacerbating the selling pressure. Futures markets allow people to buy and sell Bitcoin without actually owning it. This creates a synthetic demand that diverts real demand away from the spot market.
Spot vs. Paper Bitcoin
Woo shows charts that demonstrate a long-term decline in the supply of spot market Bitcoin, while the supply of paper Bitcoin is increasing. He believes that this is contributing to the current price drop.
What’s Next?
As of writing, Bitcoin is trading at $66,286. Woo predicts that the price will continue to fall as long as paper Bitcoin continues to flood the market.
