The Black Swan Was This: The Real Reason Behind This Bitcoin Crash
Bitcoin experienced a sharp sell-off on February 5th, with prices briefly crashing to $60,000 and over $2.6 billion in liquidations. The primary catalyst was likely a broad-based de-leveraging event within multi-strategy hedge funds, triggered by extreme underperformance in software stocks and correlated risk assets. This forced liquidation included delta-neutral positions like basis trades (selling spot Bitcoin while buying futures), exacerbating the downturn.
Despite the severe price drop, Bitcoin ETFs, including IBIT, saw net inflows of over $300 million, contradicting expectations of significant outflows. The sell-off was amplified by negative gamma dynamics in the options market, where dealers were short puts and forced to aggressively hedge by selling underlying assets as volatility spiked.
The event highlighted Bitcoin's integration into traditional finance, with the initial selling pressure originating from non-crypto systemic de-risking rather than directional bearishness. The rapid rebound on February 6th suggested the sell-off was primarily technical and hedging-driven, not fundamental. The resilience of ETF inflows indicates underlying institutional demand, potentially setting the stage for a sharp upward move once market conditions stabilize.
Odaily星球日报Ieri 00:33
