Bitcoin Liquidity Crunch Paves Way for $115K Breakout

On-chain exchange reserves have hit a five-year low, and analysts argue the resulting supply squeeze could catapult BTC toward $115,000 in coming weeks. 

Is Bitcoin Eyeing the $115K to $200K Zone?

With U.S. inflation falling lower than expected, Bitcoin has the potential of hitting $200,000 by year-end, says a 21Shares crypto strategist Matt Mena.

He noted that a decisive breakout above the $105K–$110K range could propel BTC to $120K and fast-track the year-end target of $138.5K by late summer.

Market analyst Crypto King was of a similar opinion that $120,000 was the next psychological price for Bitcoin, thanks to reduced selling activity by short-term holders.

With the consumer price index (CPI) increasing by only 0.1% in May, which was way below expectations, this might be the stepping stone towards Bitcoin soaring to $200,000.

Mena pointed out, “Today’s CPI print may serve as a bullish catalyst for Bitcoin - and it may be the unlock that brings this target forward by several months. If momentum continues building, a $200K Bitcoin by year-end is now firmly in play.”

A surge to $200,000 would validate the long-standing belief among Bitcoin advocates that it is a store of value, akin to digital gold. 

This price move signals deepening institutional adoption—from exchange-traded funds (ETFs) to corporate treasuries—indicating that major players see Bitcoin as a credible, long-term investment rather than a speculative asset.

Bitcoin Whales Remain Steadfast

Bitcoin whales — the entities holding 1,000 BTC or more — have remained incredibly steadfast, thanks to various factors:

• Institutional conviction. Institutions and high-net-worth holders view every dip—from $110K to $104K—as an opportunity, not a threat. The U.S. macro backdrop (cooling inflation, positive CPI) further reinforces this conviction.
• Reducing visible supply. Whale inflows to exchanges have dropped to 7-year lows after declining to approximately 2.3 BTC, signalling a shift in market structure and investor behavior.

Lower exchange supply tends to elevate price support.

Bitcoin whales have doubled down in June 2025, with overall holdings and new whale cohorts hitting cycle‑highs. 

Their strategic accumulation—especially during sentiment‑driven dips—and reduced exchange deposits point to confidence about a new all-time high (ATH) being attained this cycle.

Whale holding has also been going through the roof with more than $3.3 billion being recently sent to BTC accumulation wallets. 

These addresses now hold 2.91 million BTC at an average entry of $64,000, underscoring strong long-term conviction amid market volatility.

Therefore, the convergence of institutional capital, ETFs, and corporate treasury adoption is transforming Bitcoin’s demand profile. 

Conclusion

Even though Bitcoin is witnessing a pullback to the $104K zone, the apex cryptocurrency continues to make history by trading above the psychological price of $100,000 for more than 30 consecutive days. 

With an intensified liquidity crunch and whale accumulation playing out, these bullish on-chain metrics might be the catapult needed to thrust BTC to new historic highs of $115K to $120K.

Nevertheless, it remains to be seen whether Bitcoin will shed off the present downward pressure with its ATH presently sitting at $111,814.