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The price of Bitcoin is hovering around $113,000 today, approximately a week after it soared to a new all-time high exceeding $126,000, as the market stabilizes following one of its most intense corrections in years.
The surge in Bitcoin’s value last week was driven by a resurgence in institutional demand, decreasing real yields, and an increasing interest in the “debasement trade” — where investors seek safeguards against monetary expansion.
The recovery follows a turbulent weekend during which over $19 billion in leveraged positions were eradicated, compelling more than 1.6 million traders to liquidate their positions as a wave of margin calls swept through exchanges.
Bitcoin dropped from 24-hour peaks near $116,000 to about $110,000 overnight, as significant on-chain movements from both the U.S. government and BlackRock spurred speculation regarding possible institutional repositioning.
Currently, Bitcoin is trading at $113,055.
As per blockchain analysis, the U.S. government transferred 667.6 BTC earlier today, approximately valued at $74.8 million, to a new wallet in the early hours of Tuesday.
This morning, the U.S. government also announced the seizure of 127,271 BTC, valued at roughly $14 billion, from Chen Zhi, a Chinese émigré and leader of the Cambodia-based Prince Group criminal network. The accused orchestrated a global “pig butchering” crypto scam and laundered billions through shell companies, real estate, and mining operations.
Chen is facing charges of wire fraud and money laundering, while coordinated sanctions were imposed by U.S. and U.K. authorities on 146 entities and individuals associated with the operation.
Recent Volatility in Bitcoin
This volatility follows the historic deleveraging event of last week, the largest ever in the crypto space. Analysts indicated that the $19 billion in liquidations represented “a clearing of speculative excess” rather than widespread selling. Funding rates turned sharply negative — the most pessimistic since late 2023 — indicating an overextension of leveraged positions.
On-chain data supports this perspective. Long-term holders have remained stable, while metrics like Coin Days Destroyed and Spent Output Profit Ratio indicate that the majority of selling came from new entrants capitulating at a loss.
Despite the fluctuations, Bitcoin’s fundamentals continue to be robust. Metrics including hash rate, transaction throughput, and active addresses are all on an upward trend, highlighting the network’s resilience.
Compounding the pressure, renewed trade tensions between the U.S. and China have impacted risk assets. Beijing’s limitations on rare-earth exports prompted President Donald Trump to threaten a 100% tariff on Chinese goods, leading to declines in both stocks and Bitcoin.
