Renowned on-chain analyst Willy Woo has shed light on the factors driving the current correction in Bitcoin's price. Woo reveals that long-term holders, dubbed "OGs," are significantly offloading their Bitcoin stacks, contributing to the downturn. This trend is evident in the rising coin days destroyed metric, indicating a surge in dormant coins moving to exchanges for potential sale.

Woo emphasizes that this pattern of long-term holders selling into bull markets is a historical phenomenon, dating back to the Genesis block. However, he also highlights the role of futures markets, or "paper BTC," in exacerbating the selling pressure. Woo explains that the proliferation of paper BTC since 2017 has diverted demand away from physical Bitcoin, allowing synthetic BTC to be created and traded without actual coin ownership.

The analyst illustrates this point with a chart showing a long-term decline in spot market BTC supply, contrasted with a recent uptick in paper BTC supply. Woo notes that the 2022 bear market was fueled by a flood of paper BTC, and similar dynamics are at play in the current bull market. As the price of Bitcoin fails to rally, Woo's analysis suggests that the interplay between physical and paper BTC is a crucial factor to watch.

In conclusion, Willy Woo's insights offer a nuanced understanding of the forces driving Bitcoin's correction. As the market continues to evolve, it's essential to consider the complex interplay between long-term holders, futures markets, and physical Bitcoin supply to make informed investment decisions.