Bitcoin Short-Term Investors Feeling the Heat

Negative NUPL Signal: A Warning Sign

Bitcoin’s short-term holders are showing signs of fear, as their Net Unrealized Profit/Loss (NUPL) has turned negative. This suggests that they’re currently losing money on their investments.

Potential Price Drop on the Horizon?

This trend could lead to a wave of sell-offs, as investors fear further price declines. However, the analyst notes that this may not significantly impact Bitcoin’s price yet.

Keep an Eye on Mid-Term Holders

The real concern arises when the NUPL for mid-term holders (those holding Bitcoin for 3-6 months) also turns negative. This would indicate widespread pessimism and could lead to massive selling pressure.

Worst May Be Behind Us

Despite the negative NUPL signal, Bitcoin has recovered above $60,000. This suggests that the worst may be over, and the crypto market may be waiting for a catalyst to continue its upward trend.

Experts’ Predictions

  • Arthur Hayes predicts a range-bound price action between $60,000 and $70,000 until August.