The post Top Crypto Analyst Unveils Why Bitcoin (BTC) Price is Declining! appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide
The worldwide crypto market is in a constant state of decline, as the market’s rapid shift has impacted several currencies. Bitcoin’s price plummeted below $40,000 on Friday, while other cryptocurrencies, including Ethereum, were down. Due to the rising issue between Russia and Ukraine, the month of February experienced difficult circumstances with shifts in market and investor sentiments.
Who are the primary BTC sellers?
Willy Woo, a leading on-chain analyst, proposed a theory regarding a hypothetical group of investors driving the bitcoin market lower. According to Woo, the first consumers who purchased Bitcoin for less than $1,000 were the primary sellers who received a larger discount on the cryptocurrency.
According to game theory, investors who bought BTC much cheaper than 99.9% of the market and are still holding their assets would have no trouble buying it even cheaper in the future because their return on investment is already at an all-time high.
As the analyst says, those investors are unconcerned about the bulls’ capitulation because it will result in a 30-50 percent price increase, which benefits large and long-term investors who aren’t seeking to catch short-term cycles and price spikes.
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Willy Woo’s tweet was in response to another author’s observation that Bitcoin buyers who have held the cryptocurrency since it was worth $60,000-$30,000 will not sell it even if it falls to $20,000, implying that traders who have lost a significant amount of money are more likely to “baghold” further down despite their losses.
Rather than riding out a full negative cycle, investors who follow specific techniques or rely on short-term cycles sell their assets whenever they hit a given price level. The number of old Bitcoin wallets has been steadily increasing, with a small spike earlier this month, indicating that the number of traders and investors prepared to store the currency rather than sell it at a discount is gradually increasing.