At press time, the market is in a state of fear and Bitcoin is trading at $ 49,325.77. After hitting a new all-time high this year, it could look like the royal coin has fallen from the throne.
However, on-chain analyst Willy Woo and podcast host Peter McCormack believe that price isn’t everything as big changes are taking place in both on-chain data and world news.
No “great expectations”
For starters, McCormack stated that although Bitcoin’s price essentially doubled in 2021, the asset is still roughly the same as it was on February 12th. For his part, Woo emphasized on larger exchanges becoming more active, the emergence of Bitcoin ETFs, changes in mining data, and mainstream adoption.
Woo said
“… We don’t get the kind of exponential outliers, parabolas and abbreviations. We get round tips and that’s a sign that institutions are coming here and doing short selling here. Some of them don’t actually take positions such as making a profit. It’s another ball game. “
However, regarding Bitcoin’s performance in 2022, he later stated:
“Of course we have reached an all-time high …”
Many words can be used to describe Bitcoin, but is one of them “boring”? McCormack suggested that the more stable price of Bitcoin could drive adoption – before that, of course, greater acceptance would drive the price back up. He stressed that he was “going through these huge upheavals”.
On the other hand, Woo wonders if this is “boring”.
Great American regulation
Regulatory action has always been a cloud over Bitcoin and its rollout, but McCormack was more optimistic, noting that Bitcoin has withstood this threat.
In contrast, Woo points out that much of the FUD comes from mainstream media, governments, and central bank regulators. McCormack argues, however,
“I feel like the real legal risk depends very much on what the United States does.”
With this in mind, the podcast host says that more and more American politicians are supporting Bitcoin and its job creation potential. In fact, he claims that Bitcoin actually has “a lot of regulatory protection” in the US.
Prestigious
Many investors were devastated after Bitcoin failed to hit $ 98,000 in November and $ 100,000 in December, as predicted by the PlanB exchange model. Even so, the bitcoin stock flow model’s nickname has stated that the S2F model is still in use.
Regarding the Bitcoin stock-to-flow model, Woo called PlanB a “really nice guy who figured out bullish progress.” Woo also claims that the model will still hold true even if Bitcoin is not within the prediction limits.