Concentration of BTC 'chips' indicates possible volatility, assesses analyst
According to information from BlockBeats, on-chain analyst Murphy stated that the level of concentration of Bitcoin 'chips' serves as an important early signal for potential sharp movements in the market. When this concentration, within a range of up to 5% of the current spot price, exceeds 13%, the market enters a state of alert. Above 15%, the risk is considered high. Generally, the higher this concentration, the greater the chance and intensity of volatility tend to be.
Currently, the concentration of BTC chips is around 11%. Although this is a relatively high level, it still remains below the critical zone of 13%. Thus, from the perspective of the chip structure, the possibility of strong fluctuations is limited, as there are no requirements for a domino effect in the market.
Additionally, investors are closely monitoring the release of IPC data, scheduled for the evening of the 18th at 21:30, as well as the decision on the Bank of Japan's interest rate on the 19th. In Murphy's assessment, if these events do not bring significant surprises, the impact on the market is likely to be limited to moderate movements, quite different from the intense volatility recorded on August 5th of last year, when the concentration of chips reached 15%.
