OG Bitcoiners

Hello!

Many people are asking why Bitcoin is moving up so slowly this cycle. Willy Woo shared some very interesting information that helps to understand this situation.

The reality is that Bitcoin supply is still concentrated in the hands of the early OG whales. These are the people who were buying in 2010 and 2011, when the price was under $10. They hold a big part of the supply, and they are now distributing slowly into the market.

The problem is the difference in cost basis. For them, one Bitcoin cost maybe $5 or even less. For the new buyers today, each Bitcoin costs more than $110,000. That means every time one of these OG whales sells one coin, it takes $110,000 or more of new capital to absorb it. You can imagine how heavy this pressure is on the market??

This is why the price action looks slower. It is not that adoption is weak or that demand is low. On the contrary, ETFs are breaking records and institutions are buying. But the weight of these early holders distributing creates friction. It is like a transfer from old hands to new hands, from the pioneers who took crazy risks to the new wave of investors that see Bitcoin as the ultimate store of value.

Willy Woo calls this a kind of growing pains. Bitcoin has to go through this stage. There are still investors who are sitting on 10,000x gains. HOLY SHIT!! It is natural that they want to take some profits after holding more than a decade. Once this supply is absorbed, the market will be healthier and more balanced.

So, don’t be frustrated if the climb looks slower. It is part of the process. In fact, it shows that Bitcoin is maturing. The base is getting stronger, the holders are changing, and over time the price will reflect that.

Patience is key. These waves take time, but they are worth waiting!
Stay safe out there!

Posted Using INLEO