Despite prevailing views that the low amount of a digital asset on cryptocurrency exchanges equals high demand and, therefore, an increase in price, crypto market expert Willy Woo believes that buying up massive amounts of Bitcoin (BTC) from exchanges would not necessarily trigger soaring prices.
Specifically, Woo referred to the belief that buying up the inventory of Bitcoin on exchanges would moon the price as a “fallacy,” arguing that “this happened all through the 2022 bear” market, as he explained in an X post published on September 24.
Furthermore, the cryptocurrency analyst highlighted that “there’s no supply shock because synthetic BTC via futures markets added to inventory. The market made a bottom when futures markets relented,” demonstrating his views on a chart that represents Bitcoin inventory on crypto exchanges.
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As he further specified, an investor who wants to buy exposure to BTC “can now buy a futures ETF,” but, in his view, this would not necessarily trigger a supply shock “as these are just paper bets on price going up, a hedge fund can take the other side of the bet, you’ve minted a new synthetic BTC. And the limit on this is finite.”
“A spot ETF will help rectify this issue. For 7 years, the spot ETF has been denied while futures markets have flourished. The [Securities and Exchange Commission (SEC)’s] agenda has been very clear.”
Bitcoin price analysis
Meanwhile, the flagship decentralized finance (DeFi) asset was at press time changing hands at the price of $26,126, demonstrating a decrease of 1.72% in the last 24 hours, as well as declining 2.13% across the previous seven days while maintaining a positive movement of 0.33% on its monthly chart, as per the data on September 25.
At the same time, it is also worth noting that Woo admitted to being wrong in “neglecting to account for the macro impact of paper BTC,” as he “saw the market bullish in early 2022 by reading on-chain (spot) glows as bullish, all the while the leviathan of futures impact was saying the opposite.”
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