Analyst Willy Woo highlights that the growth of "paper BTC" (futures open interest) may be offsetting the positive impact of a Bitcoin supply shock. Real BTC supply has become less liquid, particularly the highly liquid category, which usually indicates bullish conditions. However, paper BTC remains significantly higher than real BTC, countering the supply shock effect. As a result, Bitcoin's price has sharply declined, currently hovering around $26,500 after losing the $27,000 level.