Today the price of Bitcoin remains near $113,000, about a week after reaching a new all-time high above $126,000, as the market stabilizes after one of its most violent corrections in recent years.
Bitcoin’s price at record levels last week was fueled by renewed institutional demand, falling real yields and growing adoption of “debasement trading” as investors seek protection against monetary expansion.
The recovery comes after a difficult weekend that saw more than $19 billion in leveraged positions wiped out and more than 1.6 million traders forced to liquidate positions as cascading margin calls spread across exchanges.
Bitcoin slipped from a 24-hour high near $116,000 to around $110,000 overnight, as large on-chain moves by both the US government and BlackRock fueled speculation about a potential institutional repositioning.
At the time of writing, bitcoin is trading at $113,055.
According to blockchain analysis, the US government today transferred 667.6 BTC – worth approximately $74.8 million – to a new wallet early Tuesday morning.
Also today, the US government announced the seizure of 127,271 BTC, worth approximately $14 billion, by Chinese émigré Chen Zhi and his Cambodia-based Prince Group crime network. The defendant operated a global “pig slaughter” scam and laundered billions through shell companies, real estate and mining operations.
Chen is accused of wire fraud and money laundering, while US and British authorities have imposed coordinated sanctions on 146 entities and individuals linked to the operation.
Bitcoin’s recent turbulence
The turbulence follows last week’s massive deleveraging event, the largest in cryptocurrency history. Analysts noted that the $19 billion in liquidations reflected “the elimination of speculative excesses” rather than large-scale sales. Funding rates have turned sharply negative – the most bearish since late 2023 – suggesting an overextension of leveraged bets.
On-chain data supports this interpretation. Long-term holders remained stable, while metrics such as Coin Days Destroyed and Spent Output Profit Ratio show that the majority of selling occurred by new entrants who capitulated at a loss.
Despite the volatility, bitcoin fundamentals remain strong. Hash rate, transaction throughput, and active addresses continue to trend upward, underscoring the network’s resilience.
Adding to the pressure, renewed trade tensions between the US and China weighed on risk assets. Beijing’s restrictions on rare earth exports prompted President Donald Trump to threaten a 100% tariff on Chinese goods, pushing stocks – and bitcoin – lower.