Analyst: BTC Concentration of Holdings Drops from 15.5% to 8.2% in 7 Days, Increasing Market Uncertainty

On May 19, on-chain data analyst Murphy published an analysis of BTC chip concentration. From May 7 to May 14, BTC's chip concentration dropped from a high of 15.5% to 8.2% in just seven days. This indicates that as the price rises, it has gradually moved away from the chip concentration area. If the concentration curve continues to decline, it is likely accompanied by a continued price increase. After May 14, the concentration curve suddenly stopped declining around 8.2% and slightly turned upward. The density of 8.2% is not significantly high or low. If the price falls back to the BTC chip concentration area, the concentration curve will rise rapidly again, brewing greater volatility. Similar to January 23, 2025, in the chart, the price correction led to a decline in concentration from a high level, then turned upward midway, and subsequently, price volatility was amplified. Another possibility is that the price continues to rise, and the concentration curve will pause briefly before continuing downward, similar to the situation marked on November 3, 2024, in the chart. In summary, the current concentration curve not continuously declining but pausing midway brings uncertainty to the market direction. It is difficult to predict bullish or bearish trends through a single indicator, but the concentration curve suggests that the market may choose a direction of volatility again. When the concentration rises to a certain height, considering going long on volatility could be a good choice. Market opinions shared are for learning and exchange only and are not investment advice.