Bitcoin’s price is holding near $113,000 today, about a week after hitting a new all-time high above $126,000, as the market stabilizes from one of the most violent corrections in years.
Bitcoin’s price hit record highs last week driven by renewed institutional demand, falling real yields, and increasing reliance on “depreciation trading” — investors looking for protection against monetary expansion.
The recovery comes after a painful weekend that saw more than $19 billion wiped out of leveraged positions, and more than 1.6 million traders forced to liquidate their positions as successive margin calls swept across exchanges.
Bitcoin fell from 24-hour highs near $116,000 to around $110,000 overnight, as big on-chain moves from 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 Analytics, the US government transferred 667.6 bitcoins earlier today — worth approximately $74.8 million — to a new wallet early Tuesday morning.
Also earlier today, the US government announced the seizure of 127,271 bitcoins, worth approximately $14 billion, from Chinese immigrant Chen Qi and his Cambodia-based criminal network, the Prince Group. The defendant ran a global cryptocurrency “slaughter pig” scam and laundered billions through shell companies, real estate, and mining operations.
Chen faces charges of wire fraud and money laundering, while the US and British authorities imposed coordinated sanctions on 146 entities and individuals linked to the operation.
The recent turmoil in Bitcoin
This disruption comes on the heels of last week’s massive deleveraging event, the largest in cryptocurrency history. Analysts noted that the $19 billion liquidations reflected “liquidation of speculative surplus” rather than widespread selling. Funding rates have swung sharply negative – the steepest since late 2023 – suggesting an overextension of leveraged bets.
On-chain data supports this interpretation. Long term holders remained steady, while metrics such as “Coin Days Destroyed” and “Output Earnings Expended Ratio” show that most of the selling came from new entrants who surrendered at a loss.
Despite the volatility, Bitcoin’s fundamentals remain strong. The hash rate, transaction throughput, and active addresses continue to trend upward, confirming the health of the resilient network.
Adding to the pressure, renewed trade tensions between the United States and China affected risky assets. Beijing’s restrictions on rare earth exports prompted President Donald Trump to threaten to impose a 100% tariff on Chinese goods, sending stocks — and bitcoin — plummeting.
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