Willy Woo: “Bitcoin’s fall is the result of traders dumping quarterly futures” – Bits Media

Cryptocurrency analyst Willy Wu believes, that the current fall in Bitcoin is related to the strategy of traders, in contrast to the decline in May last year, when the market was entirely controlled by hodlers.

In an interview with Peter McCormack (Peter McCormack), host of What Bitcoin Did, Willy Woo (Willy Woo) expressed his opinion on the reasons for the winter fall of Bitcoin. In his opinion, the market is currently being restructured, and the fall in the rate of the first cryptocurrency from $69 000 to less than $40 000 caused by the actions of traders.

“Hodlers weren’t selling that much.. There was only a risk of a sell-off on futures exchanges. It was traders who led the market - they dumped their quarterly futures, and, in the end, hodlers began to sell little by little", - said the analyst.

Wu noted, what is this trend, which was observed in December and January, different from the crash in May 2021 of the year, when the market was entirely controlled by hodlers. The analyst agrees, that Bitcoin futures ETFs are damaging the rate of the first cryptocurrency.

He called on investors, who want to invest money in BTC for the long term, buy them on a cryptocurrency exchange, Instead of that, to buy Bitcoin futures ETF. At the same time, Wu admitted, that it is a “very good” tool for institutions, who need regulated crypto assets.

“But if you are going to buy bitcoins, to hold them, you will be an idiot, if you buy ETF, which is currently structured, because it is very expensive to keep it", - Wu said.

Recall, that in October ProShares launched the first US Bitcoin futures ETF under the ticker BITO. Within a few days, the volume of funds in the fund exceeded $1 billion, however, now interest in it has decreased. In November 2021 year the fund was managed $1.4 billion, but at the beginning of January 2022 year this figure dropped to 1.16 billion. Experts attribute this to the fall of the cryptocurrency market.

However, after the launch of Bitcoin futures ETFs, JPMorgan Bank said, that direct purchase of BTC is more profitable, than ETF. Ark Invest CEO Catherine Wood (Catherine Wood) reported, that the company has not invested in Bitcoin futures ETFs and is studying this instrument from the point of view of tax implications.