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Bitcoin rose from about $61,500 to nearly $65,000 after softer U.S. inflation data reduced expectations for another Federal Reserve rate increase. On-chain data showed both long-term and short-term holders selling into the recovery, creating resistance as the price approached $66,000.
Softer Inflation Data Lifts Bitcoin
Bitcoin recorded most of its weekly gain after the Bureau of Labor Statistics released the June Consumer Price Index on Tuesday. Headline inflation slowed to 3.5% year over year from 4.2% in May. The CPI fell 0.4% from the previous month on a seasonally adjusted basis, while core inflation was unchanged for the month and rose 2.6% from a year earlier.
The data reduced concerns that the Federal Reserve would need to raise interest rates at its July meeting. Lower rate expectations weakened the dollar and Treasury yields, providing support for Bitcoin and other risk assets.
Bitcoin traded around $64,700 on Thursday after reaching an intraday high above $65,500. The cryptocurrency had gained about 3% over seven days.
Long-term Holders Reduce Losses
The first group selling into the rally consists of long-term Bitcoin holders. Glassnode generally classifies coins held for at least five months as long-term supply.
Some of these investors bought near the market highs in 2025 and remain below their original purchase prices. They used the move toward $65,000 to sell at smaller losses instead of waiting for a full recovery.
Glassnode’s realized-loss data increased as Bitcoin approached $66,000. Some holders who stayed invested through the decline are selling as prices recover.
Long-term holder sales can create additional supply around important resistance levels. They do not mean that every older wallet is selling or that the group has abandoned Bitcoin.
Recent Buyers Take Profits
Short-term holders formed the second group selling during the rally. These investors bought Bitcoin near its recent lows and are now realizing gains as the price moves higher.
Their realized profits exceeded $4 million per day, reaching levels last seen around Bitcoin’s May rally. Bitcoin briefly traded above its 200-day moving average near $82,000 during that earlier move before losing momentum.
The two groups are selling for different reasons. Long-term holders are reducing losses, while newer buyers are securing profits. Their activity places supply into the market at the same time that Bitcoin is trying to extend its recovery.
Oil Prices Limit Confidence in CPI relief
The inflation report supported markets, but part of the improvement came from a sharp monthly decline in energy prices. The energy index fell 5.7% in June, while gasoline prices dropped 9.7%.
Oil prices have since increased as tensions involving Iran and the Strait of Hormuz raised concerns about supply disruptions. The rebound could feed into July inflation and reduce the value of June’s softer reading as a guide to future Federal Reserve policy.
The June Producer Price Index also fell 0.3%, showing that inflation pressures eased during the month.
Bitcoin needs enough buying demand to offset sales from both investor groups before it can hold above $65,000. Continued ETF inflows, lower yields and stronger spot demand could support the recovery, while renewed inflation concerns may keep the market below resistance.
