Willy Woo Speaks Ethereum, DeFi and Bitcoin Futures
The praised on-chain analyst Willy Woo revealed to his Twitter followers that Ethereum is heating up for a big ride
By presenting an under-the-radar metric, Woo told his 800K+ Twitter followers on Tuesday that there is still no supply shock in play for Ethereum and that should this present itself, it will push the second largest cryptocurrency to the moon.
While BTC is building up strength for ATH escape velocity, ETH is quietly building even stronger on-chain fundamentals not yet reflected in price. pic.twitter.com/V8Irs8z7Qb
— Willy Woo (@woonomic) November 2, 2021
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Supply shock forecast an asset’s price by considering the number of coins that are in the hands of people with a history of selling versus those that mostly hold on to their coins. Or as Woo explains on his website:
“At first glance you can see the Supply Shock model tracks price quite closely. A closer look shows Supply Shock LEADS price. This makes sense as we are tracking the intent of investors BEFORE their action to buy or sell.
For example, if a long-term investor that historically accumulates moves enough coins to another entity (usually it’s to an exchange) all coins held by that investor become re-classified as liquid or highly liquid as the intent of the investor is now considered to have changed.”
DeFi
On Tuesday Woo also predicted that decentralized finance (DeFi) will start competing against the traditional banking sector for market share. A few days back he had said that Bitcoin is competing with Gold when it comes to mitigating inflation risks.
1) Valuation of the banking sector: $7.3T
2) Valuation of inflation hedges (store of value assets): approx $500T
DeFi is competing for (1). Bitcoin is competing for (2).
— Willy Woo (@woonomic) November 2, 2021
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Bitcoin Futures ETF
The on-chain analyst also spoke with Peter McCormack on his ‘What Bitcoin Did’ podcast on October 29, where they discussed the current bull market and the effect the recently launched Bitcoin Futures ETF’s have on market players. According to Woo, for traditional traders such as hedgefunds who look to make some yield on fiat it is an excellent risk-free opportunity to make between 15-20% risk-free. Nevertheless, he said that:
“But if you are valuing Bitcoins, then you are losing against Bitcoin and your wealth in Bitcoin terms is dropping and that is kinda shitty”
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Source: igaming
