Bitcoin price volatility is expected to increase as 170,000 BTC held by short-term holders begins to circulate. CryptoQuant warns of potential significant market movements caused by this influx. Short-term holders have been identified as key contributors to recent selling pressure, trading 930 BTC daily compared to long-term holders’ 529 BTC. This situation reflects panic among short-term investors, but long-term market confidence remains.
Bitcoin price is expected to exhibit significant volatility soon as a large quantity of the cryptocurrency is being moved onchain. CryptoQuant reported in its April 18 blog that Bitcoin short-term holders (STHs) are stirring recent calm in the market, with 170,000 BTC from users holding coins for three to six months starting to circulate. According to contributor Mignolet, such movements typically indicate potential price fluctuations.
This marked outflow represents the largest surge since late 2021, with implications for market price direction, which has historically oscillated both upwards and downwards following similar events. Mignolet confirmed, “Volatility is coming,” indicating that traders should prepare for potential shifts.
Cointelegraph highlighted that STHs are particularly reactive to abrupt market changes, accounting for a disproportionate portion of recent selling pressure. STH entities, defined as those who purchased Bitcoin within the last six months, have been identified as a major reason for the current price drop.
CryptoQuant indicated that short-term holders have been selling an average of about 930 BTC daily to exchanges, significantly more than long-term holders, who moved approximately 529 BTC daily. Such actions reflect a trend of fear-driven selling, while the sentiment among long-term investors seems to be more stable.
Crazzyblockk characterised the current market situation as a “classic shakeout,” asserting that the selling by STHs does not signify a mass exit from Bitcoin investors. Instead, it suggests panic among short-term and mid-tier holders in response to market conditions, while long-term confidence persists amid horizontal price movements and compressing volatility.
