Chinese Analyst Warned: “If This Happens to Bitcoin, the Trend Will Turn Bearish Very Quickly”

Cryptocurrency analyst Willy Woo offered insightful insights into the nature of the current bull ￰0￱ believes this cycle is unfolding with a different dynamic than past bull markets, with long-term spot investors the primary force driving the ￰1￱ recalled that the liquidity that fueled the previous bull market peak came mostly from what he called “paper hands”—short-term derivatives ￰2￱ noted that these investors entered the market for short-term speculative gains but had no intention of staying long-term, thus undermining market ￰3￱ picture is different in the new ￰4￱ stated that this “paper hand” liquidity in derivatives markets is gradually diminishing, while long-term liquidity in the spot market remains strong.

However, according to the analyst, this situation isn't a signal of a “super cycle” as some investors ￰5￱ News: Whale That Shorted Bitcoin Just Before Trump's Statement in the Last Major Drop Strikes Again “If the spot liquidity of long-term investors starts to decline, the market will quickly revert to a bear trend,” Woo ￰6￱ analyst also noted that two cycles have historically overlapped in the crypto market: the Bitcoin halving cycle and the global M2 liquidity ￰7￱ to Woo, central banks' money supply increases every four years have aligned these two cycles. However, the situation may change in the coming ￰8￱ stated that Bitcoin's performance would be tested in the event of a possible global economic contraction and made the following assessment: “If we get a business cycle contraction like in 2001 or 2008, we'll see if Bitcoin reacts like tech stocks or like gold.” *This is not investment ￰9￱ Reading: Chinese Analyst Warned: “If This Happens to Bitcoin, the Trend Will Turn Bearish Very Quickly”