BTC Chip Concentration Signals Potential Volatility, Analyst Says

The concentration of BTC chips serves as an effective early warning indicator for potential volatility. When the concentration within a 5% range of the current spot price exceeds 13%, it enters a warning zone, and above 15% is considered high risk. The higher the concentration, the greater the likelihood and magnitude of volatility.
Currently, BTC's chip concentration stands at 11%, which is moderately high but not yet in the warning zone above 13%. Therefore, the probability of significant volatility is low from the perspective of chip structure, as it does not meet the conditions for a 'chain reaction.'
The market is also anticipating the release of CPI data on the evening of the 18th at 21:30 and the Bank of Japan's interest rate decision on the 19th. Murphy believes that unless these events significantly exceed expectations, their impact on the market should remain within the range of 'minor fluctuations,' unlike the intense volatility experienced on August 5th last year when chip concentration was at 15%.
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