Willy Woo suggests that the recovery of Bitcoin depends on weak miners leaving the network. Woo points out that in the past, there have been hash rate recoveries within 24 days in 2017 and 8 days in 2020. However, the current recovery is taking longer, lasting for more than 61 days, due to market conditions and changes in investor behavior caused by the recent halving.
In the last 24 hours, the price of Bitcoin has dropped by 1.5% to $64,590. Since reaching its all-time high price of $73,084 in March 2024, Bitcoin has lost more than 12% of its gains and is struggling to maintain the $65,000 support level. Many are now wondering when the price will reach its all-time high again.
Willy Woo, a respected figure in the crypto community, has shed light on the factors that could drive Bitcoin’s potential recovery. According to Woo, the timing of the recovery is closely tied to the exit of weak miners from the network. These miners, who often use outdated hardware and face high operational costs, are either forced to shut down their operations or upgrade their equipment to remain competitive. This leads to downward pressure on Bitcoin’s price as these miners sell their holdings to cover losses or finance upgrades.
The process of weak miners exiting the network is crucial for the long-term health and stability of Bitcoin. By keeping inefficient participants out, Bitcoin becomes more resilient and robust, paving the way for price recovery.
Examining historical data, Woo provides insights into the potential timing and magnitude of Bitcoin’s next price rally. In 2017, Bitcoin experienced a hash rate recovery within 24 days, which coincided with the traditional summer break for Wall Street individuals. Similarly, in 2020, the hash rate recovered within 8 days after the market chaos caused by COVID-19.
However, after the most recent halving, it has been over 61 days and the miners have not yet bounced back. Woo believes that this delay is due to various factors such as market conditions and the activities of large investors.