Bitcoin Nears $65,000 as Cooler Inflation Data Meets Selling From Two Investor Groups

Bitcoin climbed toward $65,000 this week after softer than expected US inflation figures lifted market sentiment, though on-chain data shows two separate groups of holders are selling into the rally, which could limit further gains.

Who Is Selling and Why

According to Glassnode data, long term holders, wallets that have held coins for at least five months, are capitulating by selling at a loss during the bounce rather than waiting out potential further declines. Many of these holders bought near last year’s price highs and are now using the relief rally to exit rather than ride out continued volatility.

At the same time, short-term holders who bought near recent lows are locking in profits at a pace exceeding $4 million per day, a selling pace last seen in May when bitcoin briefly touched its 200-day average above $82,000.

Combined Pressure on Price

With both groups selling simultaneously, analysts say this is creating overhead supply right as the market attempts to break higher, signaling that conviction remains fragile among investors still recovering from earlier losses this cycle.

What Triggered the Rally

Bitcoin rose from around $61,500 to nearly $65,000 this week, with most gains coming Tuesday after US consumer price inflation for June came in at 3.5% year over year, below the 3.8% forecast. Core CPI held at 2.6% annually. June producer price data also missed expectations, easing concerns about further Federal Reserve rate hikes and pulling the dollar index down half a percent to 100.48.

Reasons for Caution

Some analysts question whether the rally will hold. Bitget’s chief analyst noted that June’s inflation cooldown was largely driven by a temporary drop in gasoline prices that has already reversed, with oil climbing again amid tensions in the Strait of Hormuz.