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Popular on-chain analyst Willy Woo says a few key factors indicate there’s no reason to be bearish on BTC.
In a new interview with What Bitcoin Did, Woo says that on top of not being in a bear market, BTC may have broken free from its traditional four-year cycles of price tops and bottoms.
“I think a few people got very, very bearish, but there’s really no cause to be super bearish. Structurally on-chain, what the real investors are doing [indicates] that we’ve never been in a bear market, more like a little bit of a bear market within a greater macro setup.
This cycle is not a cycle in my reckoning. I don’t think we’re gonna top and have another four-year revolution where we have a one-year bear market. It’s not looking like that at all.”
Woo adds that recent macroeconomic news such as China’s Evergrande mortgage crisis and the U.S. Federal Reserve considering tapering its purchase of securities and bonds have put pressure across all investment classes.
“On the weekend trading [the S&P 500] started to look very weak and it sold off. Bitcoin likewise started selling off. So it was just selling off on a correlation to the S&P 500, where there was nothing but spot buying.”
Woo says there’s a new class of buy-and-hold investors in the Bitcoin market, which bodes well for BTC’s value as a long-term asset.
“Bitcoin’s maturing. It’s getting much larger players with big institutions coming along. This week we’ve had nothing but buying by investors. They’re buying on the exchanges, they’re scooping it up [and] moving it off to cold storage.”