Analyst Willy Woo says that the ongoing turmoil in global markets is as a result of crypto investors sacrificing the fundamentals of Bitcoin (BTC) and selling their BTC in their wallets.

Woo says the beginning of this week's capitulation is as a result of futures selling. The analyst says he is not sure whether Bitcoin (BTC) has reached the bottom yet.

   "Is Bitcoin in? I don't know. Fear-driven trading is trying to solidify the fundamentals. I think we don't trade BTC, we trade macros and stocks."

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He also states that it is the support of SPX [Standard & Poor's 500 Index] that will determine the direction of BTC. Currently, Bitcoin continues to trade at $ 28,432. By market cap, the leading cryptocurrency has dropped more than 14 percent in the last 24 hours and more than 31 percent in the last week. Woo states that Bitcoin's supply shock rate has recorded serious decreases and states the following.

   "The supply shock is the ratio of the cryptocurrencies that investors have in their wallets to those who do not have any cryptocurrencies in their wallets yet. To put it simply, 84,000 BTC has exited the hands of investors..."

Willy Woo

The analyst says a big reason for this high number is the Luna Foundation Guard (LFG), which was established to support the Terra (LUNA) ecosystem. According to BitInfoCharts, LFG removed more than 42,500 BTC from their wallets on Monday to protect the UST stablecoin. As we have previously reported as; Bitcoin has dropped 15% in the last 24 hours and is currently trading at $27,253. This is the lowest level since December 2020. BTC has lost nearly 66 percent since its record high in November. According to experts, BTC could take a further hit. Senior analyst Peter Brandt sees $27,000 as a possible floor price. BTC was trading around $31,000 before the release of US CPI data on Wednesday. However, the leading cryptocurrency dropped to $28,000 just minutes after the data came in higher than expected.

Although inflation data is slightly below the March data, it still shows that it will take much longer for inflation to fall to desired levels. This will lead to further rate hikes by the Federal Reserve, an extremely negative scenario for BTC. The Fed's rate hike earlier this month caused heavy losses in BTC. US inflation data also caused a big drop in stock markets. The S&P 500 fell 1.7 percent, while the Nasdaq, which was followed more closely by BTC, fell over 3 percent.