Willy Woo: MCR Risk Signals Declining as Investor Liquidity Returns to Bitcoin

On-chain analyst Willy Woo says investor liquidity is beginning to recover in the Bitcoin market, despite recent volatility that saw BTC surge to $124,500 before dropping back to $112,500.According to Foresight News, Woo noted that the latest move was largely fueled by forced liquidations, underscoring how speculative leverage continues to dominate short-term price action. However, he pointed to the MCR (Market Capitalization-to-Realized Value) risk signal indicator, which has been declining, as evidence that long-term investor positioning remains healthy.“The market is overly speculative. The real question is what investors are doing. The MCR risk signal is declining, suggesting that investor liquidity is recovering,” Woo said in a recent post on X.Woo argued that if this trend continues, Bitcoin could see significant upside potential, even as traders remain cautious following the sharp correction.The analyst’s comments suggest that while short-term volatility may unsettle leveraged traders, underlying liquidity conditions are improving—potentially setting the stage for the next leg of Bitcoin’s bull cycle.