Bitcoin rallied towards $65,000 after US inflation data came in softer than expected, signaling potential Federal Reserve rate cuts. However, on-chain analysis reveals two distinct investor groups, likely short-term holders and dormant supply, sold into this price strength. This suggests a supply overhang that could cap further upside, despite positive macro news. Investors should monitor how long this selling pressure persists against renewed institutional demand.
Softer US inflation data typically boosts risk assets, including Bitcoin, by increasing rate cut expectations. However, on-chain selling from specific investor cohorts indicates a persistent supply overhang, challenging the narrative of a clear path higher for crypto markets.
This dynamic reveals a market grappling with conflicting signals: positive macro drivers against persistent on-chain selling pressure. It implies a struggle for sustained upward momentum, requiring significant demand to absorb available supply.
Bitcoin surges toward $65,000 on softer-than-expected inflation data, but on-chain signals show two key investor groups selling into the bounce.