Skip to content

Willy Woo: Why buying Bitcoin on exchanges will not ‘moon the price’

Willy Woo: Why buying Bitcoin on exchanges will not ‘moon the price’

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.

Bitcoin inventory on exchanges. Source: Willy Woo

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.

Bitcoin 7-day price chart. Source: Finbold

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.”

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Services

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.