CryptoQuant warns that Bitcoin may soon face “significant volatility.”
Historical data shows that large movements in holders' holdings over a period of 3 to 6 months often precede major price movements.
Author: Helen Brown | Edited by: Cheyenne Ligon Updated: April 18, 2025, 5:57 PM Published: April 18, 2025, 3:33 PM
Key points:
- 170,000 BTC were moved from wallets that had been stored for three to six months.
- Movement by a group of medium-term holders has historically preceded sharp market swings.
- Analysts predict that significant volatility will follow.
CryptoQuant reports that Bitcoin (BTC) is preparing for a phase of increased volatility as 170,000 BTC, worth over $14 billion at the current price of $84,500, have been moved from wallets that have been in storage for three to six months, which is often associated with turning points in the market.
This group's market behavior has historically served as an early indicator of major price moves, according to the report. Medium-term holders typically represent traders who hold cryptocurrency for three to 12 months.
They tend to be more sensitive to market conditions than long-term holders, but less impulsive than short-term traders, making their actions especially significant during transitional moments.
When large volumes of Bitcoin break out of this group, it may indicate growing uncertainty or strategic positioning ahead of an expected market event. In either case, analysts interpret it as a sign that a sharp change is expected, although the direction remains uncertain.
A similar situation was observed before previous surges and corrections, including during the 2021 rally and the 2022 capitulation.
Bitcoin has traded in a range of $75,000 to $87,000 in recent months as tensions between the U.S. and other countries over President Donald Trump's tariff policies have caused jitters in markets.
Disclaimer: Portions of this article were generated using AI and reviewed by our editorial team to ensure accuracy and adhere to our standards. For more information, see CoinDesk’s full AI policy.
