BTC sees healthy correction amid macro headwinds and market overheating

Bitcoin (BTC) is undergoing its first major correction since April after a 50% rally to a record $111,880, according to Bitfinex's weekly report, Bitfinex Alpha. The pullback follows rising macro pressures, including renewed U.S. tariffs and surging U.S. Treasury yields, alongside signs of overheating in the derivatives market. Open interest in BTC options hit an all-time high of $49.4 billion, pointing to rising speculation and hedging. On-chain indicators suggest euphoria and potential local tops, but the decline appears to be a normal reset driven by profit-taking and leverage unwinding—not structural weakness. Meanwhile, U.S. economic data shows slowing consumer spending, cautious business investment and early labor market stress. Internationally, BTC adoption is rising with moves like GameStop's $513M BTC buy, the U.S. easing 401(k) crypto restrictions and Russia allowing crypto-linked instruments for investors—highlighting crypto’s continued integration into global finance.