As Bitcoin nears $65,000 following favorable inflation data, two main investor groups are capitalizing on the price increase by selling.
By Omkar Godbole Jul 16, 2026, 4:09 a.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Two groups of BTC holders are selling during the price rise. (geralt/Pixabay)SummaryShow- Two separate groups of on-chain investors are taking profits during BTC’s price increase.
- BTC has surged to nearly $65,000 following lower-than-expected U.S. inflation figures for June.
- Some market analysts contend that the inflation report may be outdated due to recent oil price increases.
As macroeconomic trends boost bitcoin BTC$64,580.78, two primary groups of investors are selling into the upward momentum, which could hinder further price gains.
The first group consists of long-term holders, defined by Glassnode as wallets that typically retain their assets for at least five months. These long-term holders, who acquired bitcoin near last year's peaks, are opting to sell their coins at a loss rather than enduring further declines. This behavior highlights a lack of faith in the sustainability of the current BTC price rally.
Short-term holders, who bought at recent lows, are also contributing to this trend by taking profits at a rate exceeding $4 million daily, reminiscent of selling patterns seen in May when BTC briefly climbed above its 200-day average of $82,000.
The combined selling pressure from both groups is likely generating additional supply in the market just as it attempts to rise further, signaling that many investors are still concerned about their previous losses.
"As price approaches $66,000, the volume of realized losses from long-term holders is increasing! Buyers from the cycle's peak are seizing this rally as an exit point, securing losses that are smaller than what they would have faced at the sub-$60,000 levels. This pattern of selling into strength rather than waiting for a recovery is indicative of waning conviction among long-term holders who are currently at a loss," the analyst noted.
"Furthermore, the selling pressure from long-term holders realizing losses is compounded by short-term holders who are now realizing profits at volumes not seen since the peak in May," the analyst added.
BTC has surged this week to nearly $65,000 from $61,500, with most of the increase occurring on Tuesday following the release of U.S. consumer price inflation data, which came in lower than anticipated. The headline CPI for June increased by only 3.5% year-over-year, falling short of the 3.8% consensus estimate, and marking a significant decline from previous months. The core CPI, excluding food and energy, recorded a year-over-year increase of 2.6%, with no change from the previous month.
June's producer price index, which offers insights into future inflation, also came in below expectations. These reports have alleviated concerns about potential Federal Reserve interest rate hikes, resulting in a 0.5% drop in the dollar index to 100.48 this week, alongside a decline in Treasury yields.
However, some analysts express skepticism regarding the longevity of this inflation-driven rally, suggesting that the recent drop in oil prices was a primary factor behind the slowdown in living costs in June, and that the recent uptick in oil prices renders this data less relevant.
"The 3.5% [CPI] figure was influenced by a 10% decrease in gasoline prices throughout June, a trend that had already reversed before the report was released, with Brent crude reaching a one-month peak as tensions in the Hormuz Strait escalated," stated Ryan Lee, chief analyst at crypto exchange Bitget, in an email.
"Markets are reacting to a snapshot from June, while July is evolving differently, and the July figures will be the first to reflect the impact of ongoing geopolitical tensions," he added.
Jasper De Maere, an OTC trader at leading market maker Wintermute, also advised caution while recognizing the inflation-driven price increase and profit-taking around $65,000. “While the inflation data is indeed positive and refreshing, it’s important to remember that the broader situation hasn't stabilized, as U.S. military actions against Iran continue for the fourth consecutive day, and the Fear & Greed Index has only shifted from 22 to 25, still indicating Extreme Fear. A single soft CPI print amidst active military tensions does not equate to a fundamental change in risk appetite,” he remarked via email.
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Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months
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CEX trading volumes experienced an uptick for the first time in five months during June, with spot trading increasing by 15.3% to $1.11 trillion, and RWA perpetual volumes hitting a record $311 billion.
By CoinDesk ResearchJul 13, 2026CEX trading volumes experienced an uptick for the first time in five months during June, with spot trading increasing by 15.3% to $1.11 trillion, and RWA perpetual volumes hitting a record $311 billion.
Why it matters:
CEX trading volumes experienced an uptick for the first time in five months during June, with spot trading increasing by 15.3% to $1.11 trillion, and RWA perpetual volumes hitting a record $311 billion.
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