The current price of Bitcoin is stabilizing at approximately $113,000, one week after the cryptocurrency reached a record high of over $126,000. This period of stability comes following one of the most significant corrections in recent years within the market.

The remarkable spike in Bitcoin’s value observed last week was driven by renewed interest from institutional investors, declining real yields, and an increasing adoption of the “debasement trade.” This phenomenon reflects a trend of investors seeking hedges against monetary expansion.

The recent recovery follows a tumultuous weekend during which over $19 billion in leveraged positions were liquidated, impacting more than 1.6 million traders as successive margin calls cascaded across exchanges.

Bitcoin’s price experienced a decline from 24-hour highs near $116,000, settling around $110,000 overnight. Speculation surrounding large on-chain transactions from both the U.S. government and BlackRock has contributed to conjectures about potential institutional repositioning.

As of the latest data, Bitcoin is trading at $113,055.

Blockchain analytics indicate that the U.S. government transferred 667.6 BTC, valued at approximately $74.8 million, to a new wallet earlier today.

Additionally, the U.S. government disclosed the seizure of 127,271 BTC, estimated at around $14 billion, from Chen Zhi, a Chinese émigré associated with the Cambodia-based Prince Group criminal network. The accused orchestrated a global “pig butchering” crypto scam, laundering billions through various shell companies, real estate investments, and mining operations.

Chen Zhi is facing charges of wire fraud and money laundering, and coordinated sanctions have been imposed by U.S. and U.K. authorities on 146 individuals and entities linked to the operation.

Bitcoin’s Recent Turbulence

The recent volatility can be attributed to last week’s substantial deleveraging event, recognized as the largest in cryptocurrency history. Analysts note that the $19 billion in liquidations signifies “a clearing of speculative excess” rather than a widespread market sell-off. Furthermore, funding rates turned sharply negative—marking the most bearish sentiment since late 2023—indicating an overextension of leveraged positions.

On-chain data supports this analysis. Long-term holders have demonstrated stability, while metrics such as Coin Days Destroyed and Spent Output Profit Ratio suggest that most selling pressure has originated from new market entrants liquidating positions at a loss.

Despite recent fluctuations, Bitcoin’s underlying fundamentals remain robust. Metrics including hash rate, transaction throughput, and the number of active addresses continue to trend positively, indicating a resilient network health.

Compounding these pressures are renewed trade tensions between the U.S. and China, which have adversely affected risk assets. Beijing’s restrictions on rare-earth exports prompted President Donald Trump to threaten a 100% tariff on Chinese goods, resulting in declines for both stocks and Bitcoin.

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