Two groups of Bitcoin holders are selling into the rally as inflation pushes price near $65K

Bitcoin jumped toward $65,000 — up from around $61,500 — on softer-than-expected US inflation data. But right as the price climbed, two entirely different groups of holders were selling heavily, each for its own reason.

What Drove the Rally

Headline CPI for June rose 3.5% year-over-year, below the 3.8% consensus forecast. June's producer price index also came in softer than expected. Bitget analyst Ryan Lee noted the drop was largely driven by a 10% decline in gasoline prices through June — a move that had already partly reversed by the time the report was published.

Who's Selling, and Why

• Long-term holders (addresses holding coins for 5+ months) — using the bounce to lock in losses rather than wait out a deeper drawdown
• Short-term holders who bought near recent lows — taking profits at a pace exceeding $4 million per day, echoing a pattern seen back in May

“it's worth noting the backdrop hasn't cleared with U.S. strikes on Iran into a fourth consecutive day”

— Jasper De Maere, Wintermute, via CoinDesk

Quote source: CoinDesk

How Sustainable Is the Move

$65,000 has repeatedly acted as resistance for bitcoin — and just a day earlier, the price had already reclaimed that level on a wave of $230 million in liquidations that flipped the market. Traders are now watching Thursday's PCE inflation report, end-of-quarter options expiry, and the Iran conflict — the Fear & Greed Index remains in "Extreme Fear" territory, having moved only from 22 to 25.

What This Means in Practice

Simultaneous profit-taking and loss-taking across two different holder groups is a rare, telling signal: the market is currently unsure enough about the rally's durability that both those in the green and those in the red would rather cash out than hold through a potential continuation.

This material is for informational purposes only and is not investment advice.