Bitcoin surged toward $65,000 on Thursday after the latest US inflation report came in softer than expected. The move marks a significant recovery, but on-chain data suggests not everyone is buying the breakout.
The inflation catalyst
The US Bureau of Labor Statistics released its monthly inflation figures this morning, and the numbers surprised to the downside. Markets had been bracing for another hot print, but the data showed price pressures easing more than forecast. That gave risk assets a green light, and Bitcoin was no exception. The cryptocurrency jumped from around $62,000 to briefly touch $65,000 before settling slightly below that level.
Who is selling?
Despite the price surge, on-chain signals point to two key investor groups selling into the bounce. That's a pattern that often caps rallies — when the people who bought low decide to take profits, or when long-term holders see an exit opportunity. The selling isn't overwhelming, but it's enough to keep the market from running away.
The timing isn't great for bulls. A breakout on soft inflation data is exactly the kind of catalyst that should fuel a sustained move higher. But if the very investors who could push prices up are instead cashing out, the rally could stall. That doesn't mean it's over — just that the path higher might be choppier than the initial jump suggested.
For now, Bitcoin is holding above $64,000, and traders are watching to see if the selling pressure intensifies or fades. The next few sessions will tell whether this is the start of a new leg up or just another fakeout.
