Bitcoin Volatility Risk Rises as Supply Clusters Near $63K
Crypto analyst Murphy has issued a warning about potential volatility in Bitcoin's price due to a significant build-up of sell-side supply near $63,000.
According to on-chain data, there is an unprecedented concentration of 890,000 BTC accumulated at the $63,000 price level so far. This amount would likely have exceeded 1 million BTC if Coinbase had not locked up 550,000 BTC in the $83,000-$84,000 range.
Murphy noted that such intense buying and selling around a single price band has not been seen since late 2025. He also pointed out that when holdings at a single price level surpassed 1 million BTC, historically the market experienced major volatility.
The analyst compared this situation to late October 2022, just before the FTX collapse, when 1 million BTC had already accumulated around $19,000 and 870,000 BTC around $18,000. Combined, those two price bands accounted for 9.7% of circulating supply.
Murphy emphasized that excessive concentration in short-term holdings sharply increases price sensitivity, making the market more prone to sharp price swings. He warned traders to remain vigilant and monitor on-chain metrics to gauge potential volatility and manage risk accordingly.