Bitcoin Price Falls To $110,000 As Institutions Move Millions

"According to on-chain analytics, the U.S. government transferred 667.6 BTC, worth roughly $74.8 million, to a new wallet early this morning. The move immediately sparked concerns that the coins - likely seized from prior law enforcement actions - could be en route to an exchange for liquidation. The transfer likely stems from the U.S. government's August 2025 conviction of Sergei Potapenko and Igor Turogin in the Hashflare mining fraud case, according to Alex Thorn, Head of Firmwide Research at Galaxy Digital."

"Around the same time, BlackRock deposited $371 million in ETH and $78 million in BTC to Coinbase, a transaction that some traders speculated could be a signal of upcoming portfolio rebalancing. The move down to $110,000 follows what has been one of Bitcoin's most volatile stretches in years. The broader market is still digesting last week's dramatic plunge, when over $19 billion in positions were liquidated within hours - the largest single liquidation event in crypto history."

"More than 1.6 million traders were forced out of positions as cascading margin calls swept across exchanges, triggering an 80% drawdown in various crypto and many altcoins. Much of the recent carnage stemmed from excessive leverage rather than broad-based selling. The $19 billion wiped out represented a clearing of speculative positions as funding rates swung sharply negative - reaching their most bearish levels since October 2023, when Bitcoin traded near $28,000, according to Bitcoin Magazine Pro analysis."

Bitcoin fell from intraday highs near $116,000 to about $110,000 after large on-chain transfers by the U.S. government and BlackRock. On-chain analytics show the U.S. government moved 667.6 BTC, roughly $74.8 million, to a new wallet, likely marking formal forfeiture tied to August 2025 convictions in the Hashflare mining fraud case involving Sergei Potapenko and Igor Turogin. BlackRock deposited $371 million in ETH and $78 million in BTC to Coinbase, a move traders tied to potential portfolio rebalancing. Markets remain volatile after over $19 billion in positions liquidated in one week, which forced more than 1.6 million traders from positions. Much of the sell-off reflected excessive leverage and sharply negative funding rates, the most bearish since October 2023.

Read at Bitcoin Magazine