On-chain analyst Willy Woo says turmoil in the global markets is leading crypto investors to disregard Bitcoin’s fundamentals and sell their BTC.
Woo tells his one million Twitter followers that the start of this week’s capitulation was led by futures selling.
The trader says he’s not certain if Bitcoin has reached its bottom yet or not.
“Is the bottom in? I don’t know. Fundamentals taking a back seat to fear-driven trading. What I do think is we are not trading BTC, we are trading macro and equities.
Right pane is SPX [Standard & Poor’s 500 Index] support which will determine BTC directionality, left pane is the equivalent BTC support.”
Bitcoin is trading for $27,042 at time of writing. The top-ranked crypto asset by market cap is down more than 14% in the past 24 hours and more than 31% in the past week.
Woo notes that Bitcoin’s liquid supply shock ratio has dropped off a cliff.
“Supply shock is the ratio of coins held by holders vs non-holders. Roughly 84,000 BTC moved away from hodlers…”
The analyst says one big reason for that high number is the Luna Foundation Guard (LFG), a non-profit organization built to support the Terra (LUNA) ecosystem.
The LFG emptied its wallet of more than 42,500 BTC on Monday to help protect its UST peg, according to BitInfoCharts.
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