Bitcoin Selloff’s Unnamed Forces in Hong Kong Examined
- Unclear Hong Kong influences trigger Bitcoin BTC -1.01% ’s dramatic decline.
- Outflows and liquidations reach $6B across cryptos.
- Secondary sources speculate on yen carry trades’ role.
Bitcoin experienced a sharp selloff in early February 2026, largely speculated to involve Hong Kong hedge funds and TradFi whales leveraging yen carry trades in the cryptocurrency market.
The selloff significantly impacted Bitcoin’s price, which fell by $15,000 in 24 hours, reflecting broader market volatility and highlighting the intricate interplay between traditional finance and crypto trading.
Bitcoin’s significant selloff in early February 2026 has raised questions regarding Hong Kong’s financial actions. Reports speculate on hedge fund strategies using leveraged yen carry trades affecting market stability.
Unnamed hedge funds in Hong Kong allegedly engaged in yen carry trades on BlackRock’s IBIT ETF, impacting the market. This activity potentially precipitated Bitcoin’s $15,000 drop and broader crypto instability.
The selloff led to substantial market-wide liquidations and affected assets beyond Bitcoin, including gold, silver, and equities. Observers note the selloff’s spread across various financial sectors.
Financial analysts discuss the subsequent impact on total digital assets, with a $2 trillion market value reduction. Speculative activities further complicated the economic landscape during these volatile times.
Market setbacks evoke memories of the FTX collapse, highlighting the unpredictability of cryptocurrency dynamics. Secondary speculation includes potential connections to prior market failures in Hong Kong. Arthur Hayes, Co-founder, BitMEX, said, “The recent selloff might indicate a systemic risk that has been brewing under the surface.”
Lack of direct data from on-chain sources has led to analytical challenges, generating conjecture about regulatory or economic adjustments. Analysts suggest vigilance in understanding future technological and cross-asset strategies.
