Bitcoin prices are currently hovering around $113,000, about a week after the market stabilized from one of the sharpest corrections in years and reached an all-time high of more than $126,000.
Bitcoin prices reached record levels last week, driven by rising institutional demand, falling real yields, and growing adoption of “downgrade trading” by investors seeking protection from financial expansion.
The recovery comes after a harrowing weekend in which more than $19 billion in leveraged positions disappeared and more than 1.6 million traders were forced to liquidate their positions as cascading margin calls spread across exchanges.
Major on-chain moves by both the U.S. government and BlackRock increased speculation about a possible institutional repositioning, sending Bitcoin down overnight from a 24-hour high of around $116,000 to around $110,000.
At the time of this writing, Bitcoin is trading at $113,055.
According to blockchain analysis, the US government transferred 667.6 BTC (worth approximately $74.8 million) to a new wallet early today and early Tuesday morning.
Also earlier today, the US government announced that it had seized 127,271 BTC worth approximately $14 billion from Chinese defector Chen Zhi and his Cambodia-based Prince Group criminal network. The defendants ran a global “pig-butchering” crypto fraud, laundering billions of dollars through shell companies, real estate, and mining operations.
Chen has been charged with wire fraud and money laundering, and U.S. and British authorities have imposed coordinated sanctions on 146 entities and individuals involved in the operation.
Recent Bitcoin turmoil
The disruption follows last week’s massive deleveraging event, the largest in crypto history. Analysts said the $19 billion liquidation reflected a “cleaning up of speculative excess” rather than a broader selloff. Funding rates have swung sharply negative, to their most bearish levels since late 2023, suggesting leveraged bets have gone too far.
On-chain data supports that interpretation. While long-term holders have remained stable, indicators such as days to abandon coins and return on consumer output show that most of the selling has been by new entrants who have incurred losses.
Despite the volatility, Bitcoin fundamentals remain strong. Hash rate, transaction throughput, and active addresses all continue to trend upwards, highlighting the health of the network’s resiliency.
Reigning trade tensions between the U.S. and China have also added pressure, weighing on risk assets. In response to the Chinese government’s rare earth export restrictions, President Donald Trump threatened to impose 100% tariffs on Chinese goods, causing a drop in stocks and Bitcoin.
Source: https://bitcoinmagazine.com/markets/bitcoin-price-settles-at-113000
