Bitcoin is bracing for extreme price swings as a significant amount of the cryptocurrency has moved out of wallets held for three to six months, according to CryptoQuant analysis.
Historical data shows that big moves from 3–6 month holders often precede major price swings.
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries.
Created in 2009 by Satoshi Nakamoto, it uses cryptography to secure and verify transactions.
Bitcoin's underlying technology, blockchain, records all transactions in a public ledger.
As of 2022, there are over 19 million Bitcoins in circulation, with a total market capitalization of over $1 trillion.
In recent days, a significant amount of bitcoin has moved out of wallets held for three to six months, a cohort that has historically served as an early signal for major price action.
The Role of Mid-Term Holders
Mid-term holders are typically considered to be traders that hold a cryptocurrency for anywhere between three to 12 months. They tend to be more reactive to market conditions than long-term holders but less impulsive than short-term traders, making their movements especially telling during transitional periods. When large amounts of bitcoin shift out of this cohort, it can indicate growing uncertainty or strategic positioning ahead of an anticipated market event.
A mid-term holder is an investor who purchases a security, such as a bond or stock, with the intention of selling it before its maturity date.
This strategy allows investors to profit from price fluctuations in the market.
According to a study by the Securities and Exchange Commission (SEC), 75% of individual investors engage in mid-term trading.
The average holding period for these investments is around 6-12 months.
A similar pattern emerged ahead of previous surges and corrections, including during 2021’s bull run and 2022’s capitulation. The recent movement of 170,000 BTC from wallets held for three to six months is a notable example of this trend.
Bitcoin has been trading between $75,000 and $87,000 over the past few months as tensions between the U.S. and other countries due to U.S. President Donald Trump’s tariff policies have caused anxiety in markets.
Analysts expect significant volatility to follow as a result of this movement. While the direction remains unclear, it is clear that investors should be on high alert for potential market swings. The recent data suggests that major price action is likely to occur, and it will be important to monitor market developments closely in the coming days and weeks.
