"Crypto Market Crash Tracing: Hong Kong Hedge Funds or TradeFi Cross-Asset Whale?" In early February 2026, the crypto market experienced a sharp correction, with Bitcoin falling to approximately $60,000. This occurred in tandem with cross-asset deleveraging in traditional markets, primarily driven by macroeconomic uncertainties (such as the Fed Chair nomination) and ETF outflows. Market rumors suggested that this sell-off was partly due to large funds liquidating their Bitcoin positions, speculating that it involved Hong Kong hedge funds or Asian TradeFi institutions. Parker hypothesized that early holders sold volatility through IBIT options, triggering a chain reaction during the October 10, 2025 crash; Franklin Bi speculated that Asian macro traders failed in their yen arbitrage, incurring losses across precious metals and crypto markets, ultimately liquidating their Bitcoin positions. Li Lin denied involvement in related funds and stated he had not reduced his BTC/ETH holdings; Wintermute CEO Gaevoy doubted the liquidation rumors, believing it was a combination of macroeconomic pressure and leveraged liquidation; Arthur Hayes attributed it to hedging activities using IBIT structured products. Read the full article: