The post A 500K BTC dump coming? Bitcoin’s volatility faces a new test! appeared on BitcoinEthereumNews.com.

Bitcoin investors are choosing to de-risk amid uncertainty If history is any guide, volatility can be an engine Bitcoin’s [BTC] volatility is its greatest strength – and its deepest flaw. Even with institutions buying in, corporates holding strong, and smart money accumulating, it’s been 120 days since BTC came close to $110k. So, what’s stopping it? As AMBCrypto flagged, investors have been locking in profits to dodge deeper drawdowns. While that might seem bearish, it hasn’t been without any strategic upside. In that sense, Bitcoin’s volatility might be building momentum for the next leg up. Long-term holder distribution and volatility signals The attached chart revealed a significant trend. Since November 2023, Long-Term Holders (LTHs) – those with BTC aged 18 months to 3 years – have offloaded over 2 million coins. They have netted roughly $138 billion in realized gains. Source: CryptoQuant This steady decline in LTH supply, from a peak of 4.254 million down to 2.176 million BTC, is a sign of a clear distribution phase. In fact, it looks a lot like what we’ve seen during past bear markets. Most notably in 2022, when a similar pattern preceded a 63% annual drop from Bitcoin’s $46,017 opening. What makes the current cycle different is the outcome. Despite comparable levels of long-term distribution and profit-taking, Bitcoin has continued to trend higher. It is up nearly 200% during the same phase. That tells us something’s changed. Instead of causing a crash, all this selling and volatility might be shaking things up and setting the stage for stronger, smarter accumulation. Bitcoin’s next big opportunity Monitoring this cohort closely is essential. Based on their current BTC treasury, data-driven analysis from a leading expert projects that up to 500k Bitcoin could enter the market by year-end. This could mean the buildup of a significant wave…

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Filed under: News - @ May 21, 2025 7:21 am