Bitcoin Surges Past $110,000 Amid Declining Exchange Reserves

Bitcoin's price rebounded sharply on Tuesday, rising to over $110,000 before stabilizing around $109,450. This follows a dip near $100,000, with traders re-entering the market.

Nearly $203 million in Bitcoin positions liquidated in 24 hours, with $195 million from short positions.
Derivatives volume surged over 110% to $110 billion; open interest increased by 7.3% to almost $77 billion.
US-China trade talks resumed, positively impacting risk assets like Bitcoin.

On-chain data indicates steady accumulation, with centralized exchanges losing 550,000 BTC since July 2024, reducing supply in circulation. The Coinbase Premium shows US buyers are paying more than international ones, while wallets holding 10–100 BTC exhibit long-term holding behavior.

Despite the rally, Bitcoin remains sensitive to equity market movements and high volatility could lead to rapid sell-offs. Analysts speculate potential all-time highs, possibly reaching $150,000 by year-end, but sustaining such growth will depend on consistent demand signals.