Bitcoin Volatility Incoming as 50K BTC Moves, CryptoQuant Warns

The Bitcoin price could be set for some significant downside volatility.

In a report on Wednesday, February 5, prominent crypto analytics firm CryptoQuant warned that 49,700 BTC, currently worth nearly $5 billion, that have not moved within the past six to 12 months were now on the move.

According to CryptoQuant analyst “XBTManager,” this move could significantly impact Bitcoin‘s price as the bulk of these assets might be sold off in the coming days. They further warned that this sell-off could lead to panic amongst retail investors, adding to the selling pressure.

Nonetheless, the analyst also cautioned that such movements can sometimes be linked to manipulation as prices tend to rebound quickly.

CryptoQuant‘s recent warning comes as the crypto market has faced significant uncertainty in the past few days.

At the start of the week, Bitcoin had faced a sharp 7% decline from an opening price near $98,000 to trade just above $91,000. Further, several altcoins had seen as much as 20% declines in a move that wiped out over $2 billion in leveraged trading positions in 24 hours.

The market dipped as President Donald Trump looked set to impose significant tariffs on Canada, China, and Mexico.

While the market sell-off has since cooled as the Trump administration has moved to stay its decision to impose tariffs on Canada and Mexico, traders remain on edge, not knowing what to expect next.

As such, another sell-off in the short term could easily trigger some panic. Several analysts continue to suggest that the $90,000 to $91,000 price range is the level that Bitcoin needs to defend or risk a drop to around $70,000.

At the time of writing, the asset trades around the $98,000 price point, representing a negligible 0.61% gain over the past 24 hours.