Yesterday, the price of Bitcoin fell by over 4% to around $58,000, triggering a broader market decline. Major cryptocurrencies such as Ethereum, Solana, Cardano, BNB Chain, and XRP also suffered losses, although not as severely as Bitcoin.
The decline follows the release of US CPI data, which despite positive stock market reactions, appeared to have negatively impacted the cryptocurrency market. US-listed spot Bitcoin ETFs saw net outflows, with Grayscale’s GBTC particularly affected. In contrast, Ethereum ETFs saw sustained inflows, with BlackRock’s ETHA particularly on the rise.
Cryptocurrency analytics firm CryptoQuant has issued a warning about the potential for further market declines. According to CryptoQuant’s analysis, the NUPL metric, a key indicator of market sentiment, is currently trading near a critical level of 0.4.
Historically, a break below this 0.4 level has usually signaled the start of a significant downtrend. CryptoQuant suggests that if NUPL continues its decline, the bears could take complete control of the market and push the price of Bitcoin down to around $40,000.
However, CryptoQuant also warns that the current decline has not yet reached a level of intensity that would definitively signal the end of the uptrend.
*This is not investment advice.