Bitcoin price is holding near $113,000 today, about a week after reaching a new all-time high above $126,000, as the market stabilizes from one of its most violent corrections in years. 

The bitcoin price to record levels last week was fueled by renewed institutional demand, falling real yields, and growing adoption of the “debasement trade” — investors seeking protection against monetary expansion.

The recovery comes after a bruising weekend that saw over $19 billion in leveraged positions wiped out and more than 1.6 million traders forced to liquidate positions as cascading margin calls swept across exchanges.

Bitcoin slipped from 24-hour highs near $116,000 to around $110,000 overnight, as large on-chain movements from both the U.S. government and BlackRock fueled speculation about potential institutional repositioning.

At the time of writing, bitcoin is trading at $113,055.

According to blockchain analytics, the U.S. government transferred 667.6 BTC earlier today — worth roughly $74.8 million — to a new wallet early Tuesday morning. 

Also earlier today, the U.S. government announced a seizure of 127,271 BTC, worth roughly $14 billion, from Chinese émigré Chen Zhi and his Cambodia-based Prince Group criminal network. The accused ran a global “pig butchering” crypto scam and laundered billions through shell companies, real estate, and mining operations. 

Chen faces charges of wire fraud and money laundering, while U.S. and U.K. authorities 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 crypto history. Analysts noted that the $19 billion in liquidations reflected “a clearing of speculative excess” rather than broad-based selling. Funding rates swung sharply negative — the most bearish since late 2023 — suggesting an overextension of leveraged bets.

On-chain data supports that interpretation. Long-term holders have remained steady, while metrics such as Coin Days Destroyed and Spent Output Profit Ratio show that most selling came from new entrants capitulating at a loss. 

Despite the volatility, bitcoin’s fundamentals remain strong. Hash rate, transaction throughput, and active addresses all continue to trend upward, underscoring resilient network health.

Adding to the pressure, renewed U.S.–China trade tensions have weighed on risk assets. Beijing’s restrictions on rare-earth exports prompted President Donald Trump to threaten a 100% tariff on Chinese goods, driving stocks — and bitcoin — lower.