Willy Woo, a popular cryptocurrency analyst, has weighed in on bullish $1 million Bitcoin ($BTC) price predictions made in recent months, including by former Goldman Sachs executive Raoul Pal and an Ark Invest analyst.
Woo addressed the $1 million Bitcoin price predictions in tweets shared with his over one million Twitter followers, noting that the flagship cryptocurrency could become a “true challenger to fiat, thus it’s a price range where fiat collapses” at the corresponding capitalizations.
According to the analyst, as Bitcoin approaches the market capitalization of fiat currencies, there is increasing bearish pressure on its price, possibly due to governments suppressing $BTC. He went on to say that if $BTC “broke the sound barrier,” its price would be influenced by bullish pressure to “escape towards infinity.”
Among those predicting Bitcoin’s price will reach $1 million is Kraken’s CEO, who believes “Bitcoin is going to be $500,000 easily within the next few years” due to “how much money printing is going on,” and added that Bitcoin will reach $1 million “easily.”
In a separate tweet, the on-chain analyst stated that the current bear market will be longer than the one seen in 2018, but shorter than the one seen in 2015, noting that the “accumulation zone” and size of this cycle are the main questions to ask right now.
Woo included a chart in his analysis showing the cost basis of Long Term Holders (LTHs), which are investors who have held their $BTC holdings for at least 155 days, and Short Term Holders (STHs) (STHs). According to the chart, the market bottoms out when the cost basis of STHs falls below that of LTHs.
Bitcoin is currently trading at $16,600 per coin at the time of writing. Bearish pressure on the cryptocurrency, which has been weighing on its price, could be coming from miners who are selling large amounts of BTC due to financial difficulties such as liquidity crunches and bankruptcy.
According to some analysts, the current state of the $BTC mining industry is unsustainable, and miners must be more proactive in managing their $BTC positions in order to stay afloat. There is also speculation that the previous “mine-and-hold” strategy (holding onto mined coins rather than selling) may no longer be viable in the current market.
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