Bitcoin’s price is in a period of extreme volatility and downward movement at this time. This volatility is mainly due to increasing geopolitical tensions between Israel and Iran, as well as speculation around the next Federal Open Market Committee (FOMC) meeting. Over the last few days, Bitcoin’s price has been wildly volatile. It pumped up over $109,000 momentarily, but it fell below the key support of $106,000 repeatedly. This turbulence not only mirrors larger market jitters but signals a newfound sense of risk aversion among investors.

Market Volatility and Price Swings

The last few days have been characterized by extreme price action within the Bitcoin market. Since that post, the digital asset has gone through a wild, tumultuous market rollercoaster ride. During the past day, its price range decreased as low as $105,486 and increased up to $108,915. The recent and long-standing conflict in the Middle East is a major factor behind this volatility. In turn, investors are clamoring for even lower risk.

As the upcoming FOMC meeting draws near, market jitters are increasing. Federal Reserve Chair Jerome Powell’s speech on monetary policy, scheduled for Friday, is stoking this speculation. Investors are especially looking for guidance about what the Fed will do with respect to the protectionist tariffs and their effects on the economy. Bitcoin today is valued at $105,480. That’s about a 2% drop from yesterday at this time.

Shifting Holder Behavior

By aggregating the recent data, we’re able to see a clear shift in Bitcoin holder behavior. There’s been a huge increase in selling activity for those that have held the crypto between 6 and 12 months. This trend indicates that many investors are deciding to cash in their chips with the markets shifting and volatile.

This cohort of holders who have held their assets for 6-12 months realized a staggering profit of $904 million. That’s the second highest daily profit registered this year — behind $21.7 million on Jan. Holder behavior is changing more than ever before. Over the past 24 hours, Bitcoin trading volume has increased 25%, a strong sign of bullish market activity and a shift back to a more favorable environment. On June 17th, Glassnode tweeted that BTC wallets were the main profit takers last week. Preferably, these wallets had held their Bitcoin for over 12 months.

Late Bull Market Phase

According to market analyst Willy Woo, Bitcoin might now be in its late bull market phase. That issue compounds the uncertainty they face. The Bitcoin Risk Model also corroborates this assessment. It’s indicative of the fact that the cryptocurrency has entered a more mature, or later, stage of its bull cycle.

Bitcoin’s failure to hang on to a break above $106k only reinforces this view. This is a sign that the upward momentum may be starting to lose steam. The market is fighting through tough headwinds. Institutional investors are closely watching some of Bitcoin’s technical indicators alongside key macroeconomic developments to get a sense of where Bitcoin is headed next.