Two Groups of bitcoin Investors sell on the rise as U.S. inflation lifts prices to nearly $65,000
CoinDesk 2026-07-16 04:09:10
Context: Bitcoin's price has surged to nearly $65,000, driven by softer-than-expected U.S. inflation reports for June, but two distinct groups of investors are selling into strength, potentially slowing the ascent. Long-term and short-term holders are capitulating, with the former selling at a loss and the latter realizing profits at a pace exceeding $4 million per day. This simultaneous selling is creating overhead supply as the market tries to break higher.
Key Facts
- Long-term holders of Bitcoin, defined as addresses/wallets that tend to hold for at least five months, are capitulating and selling their coins at a loss rather than holding through deeper drawdowns, signifying a lack of confidence in the sustainability of the latest price rise.
- Short-term holders, who bought coins near the recent lows, are currently realizing profits at a pace exceeding $4 million per day in a selling wave reminiscent of what was seen in May, when Bitcoin briefly rose to its 200-day average above $82,000.
- The U.S. consumer price inflation came in softer than expected, with headline CPI rising just 3.5% year-over-year in June, missing the 3.8% consensus forecast and marking a notable cooldown from prior months.
- Core CPI, excluding food and energy, came in at 2.6% YoY with a flat reading month-over-month, and June's producer price index also came in lower than expected, easing fears of Federal Reserve interest rate hikes.
- Some analysts, such as Ryan Lee, chief analyst at crypto exchange Bitget, remain skeptical of the sustainability of this inflation-led bounce, arguing that the collapse in oil prices mainly drove the slower growth in the cost of living in June and that the recent bounce in oil makes that data obsolete.