DeutschIn a sensational interview with “Bitcoin Magazine”, the well-known on-chain analyst and Bitcoin pioneer Willy Woo revealed that he has sold the majority of his Bitcoin holdings. A decision that surprises many – and yet is based on a clear strategy. Woo believes: The big returns are no longer in the cryptocurrency itself, but in the infrastructure behind it.
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Willy Woo is no stranger to the crypto scene. His market analyses reach millions. As an early investor, he experienced Bitcoin when the price was still below $1,000. But now, in the midst of a new all-time high and record inflows into exchange-traded funds (ETFs), he is largely turning his back on Bitcoin – at least as an asset.
Willy Woo: why the Crypto Guru is Now Selling His Bitcoins
“I am now investing in shovels, not gold anymore”, says Woo. A metaphor that sums up his new way of thinking. In a phase in which many investors are hoping for the next price jump, Woo is focusing on companies that enable the Bitcoin economy – wallet providers, mining technology, layer 2 solutions.
For Woo, one thing is certain: The great growth potential now lies in companies that operate behind the scenes. While Bitcoin has already reached a market capitalization of around two trillion US dollars, he sees the price rising by a maximum factor of 50 in the long term – to around 100 trillion dollars. That is considerable, but not comparable with the potential of start-ups, whose values, according to Woo, could multiply by a factor of 100 or even 1,000.
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Woo sees what frustrates many investors as a logical effect: Despite billions flowing into the market through ETFs, prices are not rising as steeply as hoped. According to Woo, the reason for this lies in the massive sales by early Bitcoin supporters. “Those who bought at under $1,000 are now selling at over $100,000 – the rest have to make up for this difference”, he explains. It is simply a question of liquidity: In order for the old investors to get out, enormous amounts of new capital are needed.
Crypto Analyst Warns Investors about Bitcoin and Co.
The analyst is thus indirectly warning against exaggerated expectations. The belief that Bitcoin could rise by another 200 or 300 percent in a short period of time is deceptive. Rather, it takes patience – or a rethink of the investment strategy. “The next wave of super returns will not come from the Bitcoin price itself, but from those companies that strengthen the ecosystem”, says Woo.
The analyst is currently investing in start-ups with a market valuation of between four and twenty million dollars. It is a bet on the foundation of the digital economy – and a clear sign that the boom is not emerging on the surface, but in the depths. The question remains for small investors: join in or wait? It is clear that with Woo’s decision, a prominent player is changing his strategy – and thus setting the tone in an industry that is developing rapidly. (mck)
