Renowned on-chain analyst Willy Woo has shed light on the factors contributing to the recent decline in Bitcoin's price. According to Woo, long-term holders, known as Bitcoin OGs, are selling their substantial holdings, exerting significant pressure on the market. Historically, these early adopters have sold during bull markets, and their influence cannot be overstated.

However, the selling pressure from OGs is not the only factor at play. The rise of futures markets, or "paper BTC," has also contributed to the decline. Paper BTC allows traders to engage in synthetic Bitcoin trading without holding the actual asset, diverting demand away from real BTC. This development has led to a more subdued response to buying pressure, unlike in the early days of Bitcoin when only a small number of OGs and miners sold newly minted coins.

Woo's analysis highlights the significant impact of paper BTC on recent market trends. The 2022 bear market was primarily driven by an influx of paper BTC, and similarly, periods of increased paper BTC have coincided with stagnant price action in the current bull market.

In conclusion, Woo's insights offer a nuanced understanding of the complex factors driving Bitcoin's price decline. As the market continues to evolve, it's essential to consider the interplay between on-chain dynamics and macroeconomic factors to make informed investment decisions.