$BTC "What Caused the Great Bitcoin Crash? Evidence Points to Hedge Fund Collapse in Hong Kong" By: Jeff Roberts, Fortune Magazine February 6, 2026 Translated with some adaptation Summary: - Main causes of the crash: - Hong Kong Hedge Fund Theory: Collapse of hedge funds that used "Yen Carry Trade" (Yen Carry Trade) to finance highly leveraged positions in Bitcoin options for a BlackRock ETF trading Bitcoin spot ‎$ibit (the largest Bitcoin ETF), with additional losses from the silver market. - Liquidation of positions: The value of positions declined as the market fell, leading to forced sales of shares in the IBIT fund and a price collapse. - Other contributing factors: Selling in AI assets, legislative ambiguity around blockchain, and Bitcoin's links to Epstein files. Full article for those interested: Cryptocurrency markets experienced a severe shake this week, with Bitcoin dropping about $15,000 in 24 hours—a crash unseen since the fall of the FTX platform, the infamous scam empire of Sam Bankman in 2022. On Friday, Bitcoin recovered most of its losses, now trading near $70,000, but the incident left even the most seasoned crypto experts questioning: "What the hell just happened?!" Several theories are circulating, but one seems particularly convincing: Multiple indicators point to a collapse caused by hedge funds in Hong Kong that took highly leveraged bets on Bitcoin, which ended in explosion and total loss. - Hong Kong Hedge Fund Collapse Theory: This theory was previously posted on X (Twitter) by former trader "Parker White," now Deputy CEO at DeFi Development Corporation. In a long thread, White said there is evidence of a sudden collapse in Hong Kong hedge funds that held call options (Call Options) in the BlackRock IBIT fund, the largest Bitcoin ETF in the world. White believes these funds used what is known as Yen Carry Trade (Yen Carry Trade)—a type of arbitrage based on interest rate differentials—to finance massive positions in out-of-the-money call options (Out-of-the-Money Options) in the IBIT fund. These positions were a risky bet on rising Bitcoin prices, which had been stagnant since the big sell-off last October. But the expected rise did not materialize. Meanwhile, these funds faced increasing financing costs due to disruptions in the Japanese yen market*,+ and losses in the global silver market. As a result, the funds faced a "perfect storm"—and as the crypto market continued to decline this week, their holdings' value plummeted until they were fully liquidated, forcing them to sell large amounts of IBIT shares and causing a catastrophic Bitcoin price collapse*+. - "Leverage Explosion and Risk": Simplified explanation: White wrote in trader language: > I can imagine these funds were managing highly leveraged call positions on IBIT (Very Out-of-the-Money Calls = Very High Gamma), financed with Japanese yen debt. > Maybe October 10 caused a big hole in their balance sheets, and they tried to cover it by adding more leverage, waiting for a "clear rebound." > As losses mounted and financing costs rose, they probably became more desperate to take risks, entered the silver trade... and when that trade also exploded, Bitcoin's collapse finished them off completely. White also pointed out that these funds do not deal directly with cryptocurrencies but only through ETFs, making them outside the traditional crypto ecosystem. Therefore, no warning signals appeared on specialized social networks like "Crypto Twitter," and these funds had no counterparties in the market issuing early alerts. - Other factors contributing to the collapse: This remains an educated guess. History shows that major Bitcoin crashes often result from multiple factors converging simultaneously, not a single cause. Indeed, this week's collapse coincided with widespread sell-offs in AI stocks, political uncertainty over a new blockchain regulation bill, and sensational reports of crypto figures linked to Epstein files—all factors fueling Thursday's panic. Nevertheless, White's explanation remains the most convincing so far, especially as it is supported by other circumstantial evidence, such as the recent SEC (U.S. Securities and Exchange Commission) decision to lift restrictions on Bitcoin options trading, which increased position sizes. $BTC $GT # #GateJanTransparencyReport #CryptoMarketPullback #BitcoinDropsBelow$65K #CMEGroupPlansCMEToken

#TopCoinsRisingAgainsttheTrend 🔥 #TopCoinsRisingAgainstTheTrend – More Defiance in the Feb 2026 Risk-Off Carnage! 🔥 Crypto market remains brutal: BTC bounced from ~$60K–$61K lows to ~$69K–$70K (still -45% from 2025 ATH ~$126K, Feb 5 -15%+ crash), $2B+ liquidations spikes, total cap down hundreds of billions, most alts -15–30% weekly. Yet flight to quality accelerates — blue-chips like ETH holding/rebounding, XRP with ETF/utility rotation, SOL pockets of on-chain strength, and now TRON (TRX) emerging as a resilient performer (steady volumes, stablecoin dominance, shallower % losses). This is rotation to defensive/large-cap/utility plays: deeper liquidity, institutional/ETF floors, real on-chain utility, lower relative beta → these coins drop less severely or rebound quicker. Not a full reversal (BTC still tests $65K–$70K), but smart money flees high-beta/memes into "crypto blue-chips." Breakdown with real Feb 2026 data (prices/volumes approx. as of Feb 8 post-rebound): 1. Selective Strength in Top Coins – Price & % Performance Snapshot Ethereum (ETH): ~$2,000–$2,100 (rebounded ~8–12% from Feb 5–6 lows ~$1,750–$1,850; weekly -20%+ but better relative holds/upticks vs. BTC severity). Volumes: $40–$60B+ spikes on dips (institutional bids). Edge: Upgrades (Pectra/Fusaka/Glamsterdam), staking yields, DeFi/L2 flows persist. XRP (Ripple): ~$1.30–$1.50 (shallower drops from sub-$1.20 lows; weekly -10–15% but +5–10% rebounds in spots). Volumes: $5–$15B+ surges on utility/news. Edge: Spot ETFs inflows (consistent, low redemptions in stress), cross-border payments narrative draws rotation (negative BTC corr pockets). Solana (SOL): ~$85–$105 (dips to ~$67–$84, +10–18% rebounds; weekly -15–25% volatile but pockets outperform mid-caps). Volumes/on-chain: High DEX txs/active addresses (millions daily). Edge: Developer momentum, scalability draws selective dip-buying. TRON (TRX): ~$0.28–$0.32 range (held firmer with -8–12% weekly in heavy sessions; rebounds +3–7% on green days, less severe than many L1s). Volumes: Steady $2–$5B+ daily, driven by stablecoin transfers/DeFi (TRON dominates USDT issuance/volume). Edge: Ultra-low fees, high throughput for payments/stablecoins, treasury BTC buys signal confidence; on-chain activity resilient (tx volume holds amid macro fear). Other pockets: ADA/TRX/HBAR showed relative holds (e.g., HBAR enterprise accumulation); some niche like Hyperliquid (HYPE) outliers. Takeaway: ETH/XRP/SOL/TRX lost less % or recovered faster — high BTC correlation, but "defensive rotation" to utility/liquidity kings. 2. Volume & Liquidity Dynamics – Why These Tops Resist Better Concentrated spikes: Market $100B+ in crashes, but majors dominate (ETH/BTC $40–$80B; XRP/TRX $5–$15B+ on utility flows). Deeper order books: ETH/XRP/TRX massive depth (top-tier liquidity); thin books in mid/small-caps cascade (leverage unwinds hit harder). On-chain resilience: ETH staking growth; XRP ledger/ETF bids; SOL tx millions; TRX stablecoin/DeFi dominance (holds volume when others bleed). 3. Institutional & ETF/Fund Support – The Defensive Floor ETH/XRP ETFs: Rotation inflows despite panic outflows (XRP consistent; ETH institutional dip-buy). TRX: Utility/payment narrative + ecosystem treasury moves provide "rotation haven" (low leverage, real usage). Result: Fear sells leveraged/high-beta → inflows to ETF/utility-exposed leaders → relative outperformance. 4. Network Fundamentals & Catalysts Fueling Resilience ETH: Roadmap scalability/DeFi persistence. XRP: Regulatory clarity + cross-border utility. SOL: Tx/developer momentum. TRX: Stablecoin powerhouse (low fees, high volume for transfers/DeFi); Justin Sun ecosystem + treasury confidence. News/utility triggers short-covering/rotation even in downtrend. 5. Technical & Sentiment Factors Oversold bounces: ETH ~$1,900–$2,000; XRP ~$1.20–$1.30; TRX key supports hold; volume exhaustion on dips. Sentiment: Extreme fear → "crypto havens" rotation (utility/large-caps over risky alts). FOMO in leader rebounds. Psychology: Risk-off mode — sell memes/leverage, buy blue-chips/utility. 6. Market Takeaway & Outlook Not broad bullish — BTC volatile in $65K–$70K, alts choppy — but strong flight to quality. ETH/XRP/SOL/TRX resilience (shallower drops, volume on upticks, ETF/on-chain/utility edges) shows smart money rotation. Use as relative safety/hedges awaiting macro turn (USD calm, Fed hints, liquidity return). Risk Note: Even tops flush in extreme cascades — stops essential, size small. Long-term: Bullish on ETH (ecosystem), XRP (payments), SOL (scalability), TRX (utility/stablecoins).

$BTC Choose a safe haven for yourself and your money, and don't let others decide what the safe haven is.... Last year's realized losses for gold due to counterfeiting amounted to $467 billion, which is equivalent to 2.6% of the global GDP. It’s possible that the gold bar you have is counterfeit, and you won't discover it unless you cut it and break it, The lifetime realized losses for Bitcoin due to counterfeiting are $0 because it is completely tamper-proof, Preserving value is important for your money.... $SOL #BuyTheDipOrWaitNow? #CryptoMarketPullback #GlobalTechSell-OffHitsRiskAssets