Bitcoin exchange reserves dry up as BTC price approaches $110K — is a new ATH on the horizon?

Bitcoin surged roughly 3.8% over the past 24 hours, briefly breaking above the $110,000 mark before settling around $109,600 by Tuesday morning Asian hours.

This move marks Bitcoin’s (BTC) strongest performance in June so far, reversing last week’s drop that saw the asset dip near $100,000. The price now sits just 3% below its all-time high. Behind this latest rally is a mix trading activity, on-chain signals, and macro developments.

According to Coinglass data, nearly $203 million in positions were liquidated in the Bitcoin market over the past day. Of that, $195 million were shorts, highlighting the strength of upward momentum.

Meanwhile, derivatives volume more than doubled, rising 113% to $110.63 billion. Open interest also grew by 7.3% to $76.6 billion, showing fresh capital entering the market as traders repositioned.

A key external driver appears to be easing tensions between the U.S. and China. Trade negotiations resumed in London on June 9, with hopes of a deal that could reduce tariffs and lighten export restrictions. Market sentiment improved as talks got underway, which raised demand for riskier assets like Bitcoin.

But beyond the headlines, the real story may lie in what’s happening on-chain. According to a June 10 post by CryptoQuant contributor BaykusCharts, Bitcoin reserves on centralized exchanges have dropped from 1.55 million in July 2024 to just 1.01 million BTC today. That’s a reduction of 550,000 coins in under a year.

This kind of steady withdrawal indicates long-term holding. As more Bitcoin leaves exchanges, available supply shrinks. If demand rises at the same time, as it appears to be, prices typically move up. The pattern is consistent with the notion that Bitcoin is no longer viewed as a trading asset but as digital gold. 

Further data indicates that U.S. investors’ demand is increasing. The “Coinbase Premium” indicator from CryptoQuant shows that Americans are paying more to purchase Bitcoin, a pattern frequently observed during the accumulation stages. 

Whale activity is also increasing, according to Santiment, with renewed accumulation seen across wallet sizes, especially among those holding between 10 and 100 BTC. 

There remains some caution though. Bitcoin is still correlated to the larger equity market, which could limit short-term gains if macro headwinds reappear. Furthermore, traders cite futures data as evidence that not everyone is certain of a breakout. 

Rather than long-term conviction, short-term speculation or hedging may have contributed significantly to the recent volume. Traders are still placing bets in both directions and while liquidations heavily leaned against shorts, such volatility often indicates indecision. In these conditions, it only takes a modest reversal or macro shock to shake weak hands out of the market.

Even so, the mood is turning optimistic. Many analysts are already calling for new all-time highs in the coming days, some even eyeing $150,000 by the end of , especially if U.S. debt levels keep climbing.