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 recent uptick in Bitcoin’s price is significant, especially as it represents the asset’s strongest performance in June so far. This rally stands in stark contrast to last week’s dip, where the price fell close to the $100,000 mark. Currently, Bitcoin sits just 3% below its all-time high, indicating a renewed investor interest as market dynamics shift.
Since the beginning of the month, various factors have contributed to this recovery, including trading activities, on-chain signals, and overarching macroeconomic developments that are influencing sentiment in the cryptocurrency market.
According to data from Coinglass, the upheaval in the Bitcoin market has led to substantial liquidations—approximately $203 million over the past day. Notably, around $195 million of this figure comprised short positions, underscoring the strong upward momentum Bitcoin is currently experiencing. This kind of market behavior often signals that traders anticipating declines have been caught off guard, exacerbating the rally due to forced buybacks.
In addition to liquidations, derivatives trading volume has also surged, increasing by 113% to reach $110.63 billion within the same period. This spike indicates heightened market participation and renewed interest from both institutional and retail investors. Open interest has also risen by 7.3%, settling at $76.6 billion, which further suggests that fresh capital is entering the market as traders reposition themselves to seize opportunities in this bullish environment.
A significant external driver for this market behavior is the easing of tensions between the U.S. and China. On June 9, trade negotiations resumed in London, sparking hope for a deal that could alleviate tariffs and loosen export restrictions. Improved market sentiment surrounding these talks has encouraged a greater appetite for riskier assets, including Bitcoin, as investors anticipate a more favorable economic outlook.
However, beyond the headlines, much of the bullish sentiment can be traced to on-chain data. A CryptoQuant report from June 10 highlights a substantial decline in Bitcoin reserves on centralized exchanges, dropping from 1.55 million BTC in July 2024 to just 1.01 million today. This represents a significant withdrawal of 550,000 coins in less than a year. Such persistent withdrawals indicate a trend toward long-term holding, which constrains the available supply. When demand simultaneously rises, as is currently the case, prices typically react favorably.
Moreover, U.S. investors are demonstrating increased demand for Bitcoin. The “Coinbase Premium” indicator from CryptoQuant shows that Americans are paying more than global market prices for their Bitcoin purchases—an indicator often associated with accumulation phases. This behavior signals that investors are not merely trading but are instead looking to build long-term positions, further adding to upward price pressure.
In this milieu, whale activity is also on the rise, with increased accumulation detected across various wallet sizes, particularly among those holding between 10 and 100 BTC. Such movements suggest a bullish outlook among larger investors, who tend to have more influence over price trends than the general public.
Yet, caution remains among analysts and traders alike. Bitcoin continues to show correlation with the broader equity market, which can constrain short-term gains, especially if macroeconomic headwinds resurface. Some traders cite futures data as a telltale sign that there is still significant uncertainty regarding a definitive breakout, hinting that traders are not solely placing bets based on long-term conviction but are also speculating in the short term.
This ambiguity is exacerbated by volatile market conditions. While recent trading volume has heavily favored long positions, the presence of substantial liquidation events typically indicates underlying indecision. In such an environment, even a minor reversal or macroeconomic shock could lead to a rapid sell-off, initiating a cascade of liquidations that could shake out less committed investors.
Nonetheless, sentiment appears to be improving among the trading community, with several analysts projecting new all-time highs in the days ahead. Some are even speculating that prices may touch $150,000 by the end of the year, particularly if U.S. debt levels continue to climb and influence monetary policy. As a result, many in the cryptocurrency sphere are closely monitoring developments to see if this optimism translates into sustained price increases.
