to leave a comment.

▲ Bitcoin (BTC)/ChatGPT generated image
Michael Terpin, known as the godfather of the cryptocurrency market, has warned of short-term overheating in Bitcoin (BTC) prices and made his first short bet in 10 years, drawing significant attention from investors.
According to crypto media outlet Benzinga on May 12 (local time), Michael Terpin, an early Bitcoin investor and fund manager, diagnosed that the current market has entered a technically very dangerous phase. Terpin predicted that Bitcoin is highly likely to undergo a short-term correction to the early $60,000s. He explained that he initiated a short position, believing that a healthy correction, which is essential even in a bull market, has begun.
Terpin emphasized that Bitcoin's price has formed a double-top pattern at its recent highs. In technical analysis, failing to break through resistance twice and retreating is interpreted as a strong bearish signal. He warned that excessive leverage use by retail investors and optimistic sentiment indices could ironically trigger a price decline. His analysis suggests it's difficult to expect further upside when market energy is depleted.
Potential disruptions during the legislative process of the US crypto market structure bill (CLARITY) were also identified as risk factors. Terpin believes that while regulatory clarity is a long-term positive, it could temporarily halt institutional capital deployment in the short term. Specifically, the slowing inflow into Bitcoin spot ETFs is weakening the strong buying support that has propped up the market. He predicted that price volatility would be maximized in a period of decreasing liquidity.
Terpin drew a line, stating that this decline is not the start of a permanent bear market. He explained that according to Bitcoin's four-year cycle, a severe price shakeout always precedes a significant rally. He provided specific figures, noting that if the $62,000 level breaks, downward pressure could increase to $58,000. He also added that this short position is a strategic hedging tool for asset protection.
The crypto asset market is showing tension over Terpin's unusual move. The change of heart by someone who has long maintained a bullish stance on Bitcoin is exerting significant psychological pressure on the market. Investors are adjusting their strategies, watching to see if the $60,000 support level holds. Terpin advised that strong buying opportunities would emerge again once prices have sufficiently corrected.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.