Bitcoin Price Volatility 'Imminent' as 170,000 BTC Moves Onchain: CryptoQuant

CryptoQuant Warns of Incoming Bitcoin Volatility as Speculators Move 170,000 BTC

Bitcoin's recent calm may soon give way to significant price swings as onchain activity surges among short-term holders, according to the latest analysis by onchain data platform CryptoQuant. In an April 18 report, CryptoQuant flagged a large-scale movement of Bitcoin previously dormant for three to six months — a signal that has historically preceded periods of heightened volatility.

170,000 BTC on the Move: A Classic Volatility Signal

CryptoQuant contributor "Mignolet" noted that approximately 170,000 BTC purchased between three and six months ago has recently started circulating again. This group of investors, categorized as short-term holders (STHs), is known for its heightened sensitivity to market changes.

“Large movements from this group often signal that significant volatility is imminent,” Mignolet explained.

An accompanying chart in the report shows that this is the largest such movement by volume since late 2021, a period associated with high market turbulence. The direction of the price shift is not yet clear, as past events of similar activity have resulted in both rallies and downturns.

BTC movements by 3-6 month hodler cohort (screenshot). Source: CryptoQuant

“Volatility is coming,” the report concluded.

Short-Term Holders Driving Sell Pressure

STHs, defined as entities that acquired Bitcoin within the last six months, have been a key force behind recent sell-side pressure in the market. As Bitcoin's price has consolidated in recent weeks, this cohort has reacted strongly, engaging in what analysts describe as panic selling or profit-taking.

In a separate CryptoQuant insight, another contributor, "Crazzyblockk," highlighted that STHs have been offloading an average of 930 BTC per day onto exchanges — nearly double the volume moved by long-term holders (LTHs), who only sent around 529 BTC per day during the same period.

“This behavior underscores short-term fear or profit-taking, while long-term conviction remains intact,” the analysis noted.

Bitcoin investor flow comparison (screenshot). Source: CryptoQuant

Market Correction Driven by Short-Term Reactions

Despite concerns over Bitcoin's slight correction, CryptoQuant’s data suggests the selling is not a sign of widespread institutional or long-term investor exit. Instead, the pullback appears to be driven by more reactive short- and mid-term investors.

“With Bitcoin trading sideways and volatility compressing, this cohort-driven breakdown helps us understand that the current correction is not a mass exodus by smart money — it’s more likely a reaction from nervous short-term and mid-tier holders,” the report concluded.

Conclusion

The sudden movement of 170,000 BTC signals that a volatile phase may be just around the corner for Bitcoin. While long-term holders remain steady, recent activity from short-term speculators highlights market unease and sets the stage for potential sharp price action — either up or down. Investors should prepare for a shift in market dynamics as short-term holders make their next move.