On-Chain Analyst Willy Woo: “Bitcoin Futures are Bad for Bitcoin”

In the latest episode of Peter McCormack’s ‘What Bitcoin Did’ podcast, popular on-chain analyst Willy Woo was saying that the crypto market is currently experiencing funny times but noted that the bottom has been made.

Not fully aware of the fact that the podcast had started recording Woo immediately told McCormack that he should be buying Bitcoin when the host asked him is he should, noting shortly that he is “not a freaking oracle’

Discussing the recent Bitcoin price correction following massive selloffs, Woo said that the market is restructuring:

“It is kind of a weird situation right now. The marketing is restructuring, is what I say… The amount of sell of we had from $69,000 to what is it, $32,9K… Wow that was not much hodlers selling I tell you. It was just risk off sells coming from futures exchanges. Those traders were dumping their futures and eventually the hodlers started selling down. “

He continued and said this time it was much different from May 2021:

“In May you could kind of predict it… You could see hodlers ready to dump..

But now very little people sold, yet the price kept sliding… It was led by the futures, which was different from what we normally see.”

According to Woo, Bitcoin price is impacted by the Bitcoin futures market and the weight has flipped more towards these futures.

When McCormack asked if the analyst believes Future ETF’s are bad for Bitcoin, he replied:

“Yes I do think so, we don’t need them right? You can buy Bitcoin right, we can buy them on any exchange, like Coinbase, Binance, FTX..

Futures are good for institutional traders, fully regulated, but if you buy BTC to hold, you’d be an idiot to buy ETF. It is too expensive.”

The two also discussed the possibility of Bitcoin experiencing a bear market. Woo thinks this is not the case, saying:

“Hmmm, not if the past repeats, right… Every time we have seen long-term holders hold their coins.

Bear-markets happen when everyone holding coins are “noobs”, and this is not the current situation”

Saying that he still always holds 10-20% of his assets in cash, and considering increasing that in 2022, Woo reiterated that recent times require us to be alert

“It is just choppy times, you don’t wanna be over exposed, you don’t wanna be all-in and in on leverage. When it pulls in you will freak out… And when you freak out you do the stupidest things like sell the absolute bottom…”