Bitcoin News Today: Bitcoin Active Supply Rises 2.4% in June as Price Hovers Near $118,000

Bitcoin’s active supply has shown a notable increase over the past 180 days, sparking discussions about its implications for market dynamics. Analyst Axel Adler Jr. from CryptoQuant highlighted that dormant coins are entering circulation, with a 2.4% rise in active supply in June aligning with an early distribution phase as prices hover near $118,000 [1]. This trend, while modest, mirrors historical patterns where elevated supply activity often precedes profit-taking. For example, in early 2024, supply activity peaked at 20% when Bitcoin hit $70,000, and later surged to 18% at $100,000 [1]. Such data underscores the cyclical nature of Bitcoin’s supply movements, suggesting that current activity could signal a broader distribution phase rather than an immediate sell-off.

On-chain metrics further reinforce this narrative. Key indicators like SOPR (Spent Output Profit Ratio) and W2E (Whale to Exchange) ratios have risen, reflecting increased liquidity from long-term holders and large investors [4]. This aligns with historical precedents where similar spikes often coincided with price corrections. However, the current supply activity remains lower than past cycles, indicating sellers are not aggressively liquidating holdings. Analysts note this could mean the rally has room to continue, with price stability above $65,000 and sustained accumulation by long-term holders—who control ~75% of supply—providing a foundation for future gains [3].

The interplay between Bitcoin’s supply dynamics and macroeconomic factors has also drawn attention. Arthur Hayes of Maelstrom argues that Bitcoin’s capped supply and central banks’ credit expansion position it as a hedge against fiat devaluation, predicting a potential $250,000 price target by year-end [2]. While such forecasts remain speculative, institutional adoption and stablecoin liquidity add complexity to Bitcoin’s price trajectory. Tether’s $120 billion in U.S. Treasuries, for instance, links crypto liquidity to traditional debt markets [2]. Meanwhile, growing exchange reserves—reaching a multi-year high—highlight risks of downward pressure if traders prepare for a pullback [5].

Price resilience remains a key focus, with Bitcoin gaining 2.0% weekly and 16.2% over 30 days [8]. However, volatility persists as profit-taking and increased supply could trigger short-term corrections. A recent drop to $118,339 from a $123,000 peak illustrates this tension, balancing bullish optimism with caution [6]. On-chain data from TradingView also suggests large inflows into exchanges typically signal selling pressure, potentially slowing upward momentum [7].

The market’s trajectory hinges on balancing supply dynamics, institutional demand, and macroeconomic shifts. While analyst forecasts like Hayes’ $250,000 target highlight aggressive expectations, the interplay of these factors creates a complex landscape. As Bitcoin approaches $120,000, sharper data spikes could signal a pivotal moment, but current trends suggest a pause rather than a conclusion to its rally.

Source:

[1] [Bitcoin News Today: On-Chain Metrics Hint at Next Wave of Selling Pressure](https://coinpedia.org/news/bitcoin-news-today-on%E2%80%91chain-metrics-hint-at-next-wave-of-selling-pressure/)

[2] [Arthur Hayes: Credit Expansion Will Drive Bitcoin to ... - DL News](https://www.dlnews.com/articles/snapshot/credit-expansion-drive-bitcoin-ethereum-price-says-hayes/)

[3] [Bitcoin Retains $65K While Long-Term Holders Secure Nearly 75% Supply](https://www.xt.com/en/blog/post/bitcoin-retains-65k-while-long-term-holders-secure-nearly-75-supply)

[4] [Bitcoin News Today: Bitcoin Whale Activity and Long-Term Holder Profit Signal Potential Correction](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-whale-activity-long-term-holder-profit-signal-potential-12-55-correction-2507/)

[5] [Bitcoin Reserves On Exchanges Hit Highest Level Since ...](https://www.mitrade.com/insights/news/live-news/article-3-976152-20250722)

[6] [Why Bitcoin’s Surge to $123000 Could Be Just the Start? ...](https://m.economictimes.com/markets/cryptocurrency/why-bitcoins-surge-to-123000-could-be-just-the-start-mudrex-explains/articleshow/122835491.cms)

[7] [Bitcoin Hovers Below $120K as On-Chain Indicators Point ...](https://www.tradingview.com/news/newsbtc:6224e9205094b:0-bitcoin-hovers-below-120k-as-on-chain-indicators-point-to-slowing-demand/)

[8] [Bitcoin (BTC) Price: Why $131000 Could Be Next Despite ...](https://coincentral.com/bitcoin-btc-price-why-131000-could-be-next-despite-profit-taking/)