Bitcoin is growing slower in this market cycle than many investors expected. Crypto analyst Willy Woo believes the main reason lies in the supply structure: the market is dominated by long-term holders who bought BTC at minimal prices more than ten years ago. In his view, this slows capital inflow and affects price dynamics.
Pressure From Old Holders
Willy Woo pointed out that a significant portion of supply is concentrated among investors who acquired bitcoins before 2011 at a price of around $10 or lower. To buy one BTC from them today requires attracting at least $110,000 in new capital. He emphasized that early market participants gained profits of tens of thousands of percent and are now gradually selling assets, putting pressure on the price.
According to the analyst, despite bitcoin’s growing market capitalization, the market is still in the stage of “capital absorption.”
“Gold, which is 6,000 years old, does not have investors who made 10,000x profits and are ready to sell. BTC is not at that phase yet,” Woo said.
He reminded that the total market capitalization of bitcoin is around $2 trillion, while mature macro assets are valued between $20 trillion and $250 trillion.
Other Views: The Asset Has Gone Mainstream
Investor and trader under the nickname Alamentarius also commented on the current market dynamics. In his opinion, bitcoin slowed down because it became a mature asset that went “from microcap to megacap.” He believes that institutionalization inevitably leads to reduced returns and that “bitcoiners do not fully understand this mechanism.”
General Market Conditions
Against this backdrop, the crypto market fell 2,78% in the last 24 hours, down to $3.8 trillion. According to Coinmarketcap, Bitcoin declined 2,97%, falling below $111,000, while Ethereum dropped 3,89% to $4,588. Analysts link the drop to the activity of large holders shifting liquidity from BTC to ETH, which may be adding pressure to the market.
Optimism From Trump’s Circle
Entrepreneur and Donald Trump’s bitcoin adviser David Bailey stated that there will be no new bear market in the coming years. He believes that institutional interest in cryptocurrencies will continue to grow.
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