Two groups of bitcoin Investors sell on the rise as U.S. inflation lifts prices to nearly $65,000
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- Long-term bitcoin holders who bought near last year's highs are capitulating, selling at a loss into the relief rally rather than waiting for recovery, according to Glassnode's on-chain data defining LTHs as addresses holding for at least five months.
- Short-term bitcoin holders who scooped up coins near recent lows are realizing profits at a pace exceeding $4 million per day, matching volumes last seen in May when BTC briefly hit its 200-day average above $82,000.
- BTC bounced from $61,500 to nearly $65,000 this week, with most gains concentrated Tuesday after June headline CPI came in at 3.5% YoY against a 3.8% consensus, and core CPI printed at 2.6% YoY with a flat MoM reading.
- June PPI also undershot expectations, easing fears of further Fed rate hikes and dragging the dollar index down roughly half a percent to 100.48, with Treasury yields falling alongside.
- Ryan Lee, chief analyst at Bitget, warned the 3.5% CPI was driven by a 10% drop in gasoline through June that has already reversed, with Brent at a one-month high as the Strait of Hormuz situation escalates.
- CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11 trillion and RWA perpetual volumes hitting a record $311 billion.
Why it matters: Two independent investor cohorts — underwater cycle-top buyers locking in losses and profitable bottom-fishers cashing out — are simultaneously exiting the relief rally, creating overhead supply exactly as BTC tests resistance. The CPI beat was driven by a gasoline drop that has already reversed, and with U.S. strikes on Iran now in a fourth consecutive day, the July inflation print is likely to erase the dovish narrative that powered this bounce.
