willy woo warning that bitcoin could drop below $40k...

on chain analyst willy woo has raised concerns about bitcoin’s recent run to 120k, calling it a “bear divergence.” in his view, the rally lacked the usual level of capital inflows seen in healthier alltime highs, which makes him think the move may not be fully sustainable.

hepoints out that whales have sold an estimated 115k to 120k btc over the past two months and even some long term holders have taken profits. he argues that this profit taking, combined with a possible reversal in global liquidity, could push bitcoin much lower, even below 40k.

he also notes that altcoins are underperforming compared to past cycles, suggesting institutions may prefer exposure through public companies holding bitcoin on their balance sheets rather than buying crypto directly.

but also he thinsk it is not all doom. woo still maintains a long term bullish thesis, projecting bitcoin could eventually grow into a 10 to 100 trillion market cap asset over the next decade, matching the size of global bonds or gdp. while he warns about volatility, others argue that the rise of bitcoin spot etfs, ongoing institutional inflows, and wider acceptance could help buffer the downside risk compared to past cycles.

in short, woo’s warning highlights real risks, but the bullish structural case for bitcoin is not gone. whether this is a major correction brewing or just healthy profit taking depends on how global liquidity and institutional flows play out in the coming months.