Bitcoin (BTC) Traders Brace for Turbulence as 170,000 BTC Owned by Short-Term Holders Start Circulating

Bitcoin (BTC) traders are bracing for turbulence today as the on-chain analytics platform CryptoQuant has revealed interesting news.

On-chain analytics platform CryptoQuant has revealed interesting news as Bitcoin traders brace for turbulence. According to the latest analysis, a massive 170,000 BTC, owned by short-term holders, has started circulating in the market. This means that there could be heightened market volatility in the coming days.

As explained by CryptoQuant contributor Mignolet, “Around 170,000 BTC are moving from the 3–6 month holder cohort. Large movements from this group often signal that significant volatility is imminent.”

Indeed, since late 2021, major upward and downward price swings have followed similar spikes in short-term holder (STH) activity. This time, the BTC units being moved are the largest seen from this group in years, further intensifying expectations for a market shake-up.

Short-term holders, known for their sensitivity to market shifts and narratives, have recently been identified as the main source of Bitcoin selling pressure.

As CryptoQuant contributor Crazzyblockk noted, “Short-term holders (STH) have been the primary sellers, sending an average of 930 BTC/day to exchanges,” compared to long-term holders (LTH), who moved only about 529 BTC/day. This disparity highlights short-term fear or profit-taking, while long-term HODLing remains strong.

Crazzyblockk described the current market action as a “classic shakeout,” emphasizing that the correction is driven by nervous short-term and mid-tier holders rather than a mass exit by savvy investors. With Bitcoin trading sideways and volatility compressed, this cohort-driven activity suggests a temporary reaction rather than a fundamental sell-off.

“Bitcoin volatility is coming,” concludes CryptoQuant, signaling traders and investors to prepare for potential price swings shortly. While the direction remains uncertain, the surge in BTC movement among speculators marks a critical juncture for Bitcoin’s price trajectory.