Leading on-chain analyst provides a theory that explains why some large address might prefer selling over buying right now
Leading on-chain analyst Willy Woo came up with a theory about a possible group of investors pushing the cryptocurrency market down. According to Woo, early buyers who bought Bitcoin for less than $1,000 were top sellers who would get the cryptocurrency at a higher discount.
According to game theory, investors who have purchased BTC significantly cheaper than 99.9% of the market and are still holding their assets will have no problem buying the asset even cheaper since the ROI of their investment is already unprecedentedly high.
As the analyst suggests, these investors have no problem seeing the bulls’ capitulation as it will lead to another 30-50% price surge, which works in favor of large long-term investors who aren’t trying. to catch cycles and short-term prices. spikes.
Willy Woo’s tweet was an answer to another author, who noted that Bitcoin buyers holding the cryptocurrency since $60,000-$30,000 will not sell it, even if it drops to $20,000, suggesting that traders who hold at major losses are most likely to “baghold” further down despite their loss.
Investors who follow specific strategies or rely on short-term cycles typically sell their assets after crossing a certain price threshold rather than sustaining a full down cycle.
The theory might have ground to stand on if we compare the assumption with on-chain data previously covered by U.Today. According to it, the number of old Bitcoin wallets has been in an uptrend and received a temporary boost earlier in the month, suggesting that the number of traders and investors willing to hold the currency rather than sell it at a discount is gradually increasing.
