After hitting a low of $66,900 on April 3, Bitcoin has climbed back above $73,000, recovering the $70,000 mark on April 7. The price action alone would be noteworthy, but what is happening beneath the surface makes this moment more significant. On-chain data analyzed by Ruga Research on CryptoQuant shows that exchange reserves are shrinking while short positions are building, a combination that has historically created the conditions for a short squeeze . Outflows Are Picking Up Speed The numbers tell a clear story. On April 8, exchanges recorded a net inflow of 2,109 BTC. Within 24 hours, that had reversed to a net outflow of 2,533 BTC on April 9. By April 10, the outflow deepened further to 5,441 BTC, the largest single-day withdrawal recorded in the past two weeks. Across those two days alone, 7,974 BTC worth approximately $582 million have left exchanges. Ruga Research noted that this back-and-forth movement has been ongoing for weeks. The individual daily figures are less important than the overall direction, which has consistently trended toward fewer coins sitting on exchanges while investors target other assets . Reserves Have Been Falling Since February This is not a new development. Since February 15, total Bitcoin exchange reserves have declined from 2.8 million BTC to 2.701 million BTC as of April 10. That is a reduction of approximately 100,000 BTC, worth around $7.3 billion at current prices, over roughly two months. Fewer coins on exchanges means less Bitcoin available for immediate sale. Ruga Research was careful to point out that this does not by itself drive prices higher, but it does remove a significant source of selling pressure. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Short Traders Are Piling In On April 9, the funding rate in Bitcoin derivatives markets fell to -0.253%, meaning short position holders were paying fees to those holding long positions. That inversion signals that bearish bets are currently dominant and that traders are holding those positions with conviction. When deeply negative funding rates coincide with declining exchange reserves , short squeezes have followed in the past, though Ruga Research was clear that this outcome is not guaranteed. What the data does confirm is that the market is under tension. Coins are leaving exchanges, short exposure is elevated, and traders on both sides are watching closely. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post $582 Million in Bitcoin (BTC) Drained From Exchanges. Is a Short Squeeze Coming? appeared first on Times Tabloid .
