CryptoQuant warns in an article that Bitcoin (BTC) may be about to enter a period of heightened volatility as 170,000 BTC (worth more than $14 billion at the current price of $84,500) has moved out of wallets that have held for three to six months, a group often associated with market turning points.
The article notes that on-chain behavior from this group has historically been an early signal of major price action. Medium-term holders are generally considered traders who hold cryptocurrencies for three to 12 months.
They tend to be more responsive to market conditions than long-term holders, but less impulsive than short-term traders, making their moves particularly telling during transitional periods.
When large amounts of Bitcoin flow out of this group, it can indicate growing market uncertainty or strategic positioning ahead of an expected market event. In either case, analysts see it as a sign that significant volatility is coming, although the direction is unclear.
Similar patterns have preceded previous rallies and corrections, including the 2021 bull run and the 2022 drop.
Bitcoin has been trading between $75,000 and $87,000 over the past few months as tensions between the U.S. and other countries caused by President Donald Trump’s tariff policy have caused market anxiety.
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