CryptoQuant Issues Warning: Bitcoin (BTC) Expected to Face Major Volatility Soon
Bitcoin (BTC) is likely approaching a phase of increased volatility, as 170,000 BTC—valued at over $14 billion based on its current price of $84,500—has transitioned from wallets held for three to six months. This group is often associated with significant market turning points, according to a post from CryptoQuant. Historical on-chain activity from this segment has proven to be an early indicator of major price movements.
Mid-term holders are defined as those who typically keep their cryptocurrency for periods ranging from three to 12 months. They are generally more responsive to market conditions than long-term holders, yet less impulsive than short-term traders. This makes their actions particularly informative during periods of transition.
When substantial amounts of bitcoin are transferred out of this category, it may suggest rising uncertainty or strategic adjustments in anticipation of an upcoming market event. In any case, analysts interpret this as a precursor to potential significant movement, though the specific direction of that movement remains uncertain. This pattern has been observed prior to past surges and corrections, notably during the bull run of 2021 and the capitulation of 2022. (Source: CryptoQuant)
Recently, Bitcoin has fluctuated between $75,000 and $87,000, influenced by geopolitical tensions, particularly related to U.S. President Donald Trump’s tariff policies, which have generated apprehension in the markets.
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