BTC supply concentration hits 12%, signaling possible volatility spike

Crypto analyst Murphy (@Murphychen888) said BTC supply concentration within a plus-or-minus 5% range of the spot price has risen to 12%. Murphy said supply concentration is one of the key indicators used to gauge volatility, as an excessive build-up of holdings at a specific price range can trigger broad position movement even on small price swings, potentially causing sharp volatility. Murphy added that if BTC continues to trade sideways in the $62,000-$66,000 range for the time being, supply concentration could rise further, increasing the likelihood of a strong move higher or lower and a redistribution of holdings.