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Bitcoin Facing Unprecedented Supply Shock, Will Surpass ,000,000 Per Coin: On-Chain Analyst Willy Woo

Bitcoin Facing Unprecedented Supply Shock, Will Surpass $2,000,000 Per Coin: On-Chain Analyst Willy Woo

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Source: Daily Hodle

Bitcoin trader and analyst Willy Woo says a growing Bitcoin supply crisis will launch the asset towards a multi-trillion dollar evaluation.

In a new interview on Real Vision, Woo explains that by following the movement of Bitcoin into and out of exchanges, it is clear that BTC supplies are drying up.

The analyst expects the market to see a supply crunch even more drastic than the one which caused the flagship cryptocurrency to rise in price by roughly 2,000% in 2017.

“We can see this from tracking the flows of coins out of the exchanges, where typically people speculate or buy and sell their coins, and they have a set inventory, some of which is allocated for speculation. We’ve just seen an unprecedented amount of depletion of that inventory.

If you look back in the 2017 bull market, we saw like a five month depletion of inventory, and that was enough to propel the bull market of 2017 right up to the $20,000 [mark] from what initially was about $1,000 to $1,500 when the inventory depletion ended, and now we’re in this zone of the Lehman’s 12 months of inventory depletion.”

As the market runs out of Bitcoin and institutional investors continue to learn of its benefits, Woo expects the market cap to balloon and well surpass that of gold, with the price of a single BTC surpassing the $2 million mark.

“Once you get a glimpse of something that’s easy to access like Bitcoin without the trouble of holding assets like real estate, it’s going to take a big chunk out of that. There’s no way Bitcoin is going to stop at the market cap of gold, which is $10 trillion, it’s going to go a lot higher, which means that we’re going to be going into the millions of dollars per coin, which is hard to believe right now but if you look at the sheer fundamentals and stretch it off over the long term, that’s how cheap Bitcoin is today.”

Woo also anticipates that as Bitcoin matures and the asset gains a larger share of the market, it is unlikely that future Bitcoin bear markets will be as harsh or volatile as those of the past.

“There is a general trend downwards and there’s no crazy predictable trend downwards in volatility so I think actually, we’re due to start to drop down into the lower volatility range that – well, I don’t have the charts right on hand, but I think it will surprise a lot of people how low the volatility can drop and beyond a certain part of size of capital base, volatility drops to zero because it becomes the new monetary base.

If it does become this unit of account, obviously there’s different variations on that theme that could be a basket of assets that becomes the new monetary base but ultimately, the volatility will drop very, very low because there’s the new monetary standard part of it.”

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The post Bitcoin Facing Unprecedented Supply Shock, Will Surpass $2,000,000 Per Coin: On-Chain Analyst Willy Woo appeared first on The Daily Hodl.

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Author: Daily Hodl Staff