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Crypto’s latest selloff was a TradFi event, not a crypto crisis

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HONG KONG — Last week’s sharp crypto sell-off was less a replay of 2022’s scandals and more a macro-driven unwind spilling over from traditional finance, according to market participants at Consensus Hong Kong 2026.

“After Oct. 10th, a lot of people had already reduced risk,” said Fabio Frontini, founder of Abraxas Capital Management. “This is just a spillover from TradFi entirely… it’s all interconnected now.”

Panelists pointed to the unwinding of yen carry trades as a key catalyst. Thomas Restout, group CEO of B2C2, described the mechanics: investors borrow in low-interest-rate currencies like the yen and deploy that capital into higher-yielding or risk assets, including bitcoin, ether, gold and silver.

“What does that mean? That means people borrow currencies that have cheap interest rates, and they use it to put on carry trades,” Restout said.

The yen carry trade refers to investors borrowing Japanese yen at low interest rates, converting it into other currencies then investing into higher-yielding assets. However, should yen strengthen, investors have to buy it back to repay loans, causing the trade to “unwind” and trigger market volatility.

As yen rates rose, borrowing costs increased. At the same time, higher volatility triggered steeper margin requirements. “In metals, it went from 11% margin requirements to 16%,” Restout added. This forced some players to unwind positions as collateral demands surged.

The result was broad pressure across risk assets, not just crypto.

Exchange-traded funds (ETFs) tracking bitcoin also saw heavy volumes during the downturn, though panelists pushed back on the idea of full-scale institutional capitulation. At their peak, bitcoin ETFs totaled roughly $150 billion in assets; today they still hold around $100 billion, Restout said. Net outflows since October are about $12 billion—significant, but modest relative to total assets.

“If anything, it means that the money is changing hands,” Restout said, suggesting rotation rather than wholesale exit.

Looking ahead, Emma Lovett, credit lead for Market DLT at J.P. Morgan, said 2025 marked a regulatory inflection point. A more permissive U.S. backdrop has accelerated experimentation beyond private, permissioned blockchains toward public chains and stablecoin settlement.

“What we started to see in 2025… is the introduction of using public chains and… stable coins for the settlement of traditional securities,” she said, signaling a deeper convergence of TradFi and crypto infrastructure in 2026.

Robinhood Reports $4.47B Record Annual Revenue, but Q4 Profits Slide 34%

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Robinhood posted Q4 revenue of $1.28 billion, up 27% year‑over‑year but shy of Wall Street’s $1.34 billion forecast. Net income fell 34% to $605 million, largely due to a tax provision versus last year’s tax credit. Mixed Results in Q4 Despite Robust Revenue Growth Robinhood Markets Inc. reported a 27% increase in fourth-quarter revenue, reaching […]

As bitcoin (BTC) price extends declines, industry figures say it’s time to buy: Crypto Daybook Americas

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By Francisco Rodrigues (All times ET unless indicated otherwise)

Bitcoin dropped for a third straight day after failing to remain above the $70,000 hit during the weekend recovery as spot trading volumes thinned and theCrypto Fear and Greed Index held in “extreme fear” territory.

The broader crypto market capitalization has slipped to about $2.28 trillion, with the CoinDesk 20 (CD20) index losing 3.4% over the past 24 hours. Even so, onchain data aggregator Glassnode described the pullback as modest by past standards, with no signs of panic selling seen in prior cycle peaks.

Despite the lower volumes and poor sentiment, inflows to spot bitcoin ETFs have been steady over the past three days, helping absorb some selling pressure. The market is now in a price discovery phase, according to Wintermute.

“With spot volumes still relatively light, leverage is driving short term moves as was illustrated by BTC squeezing back up from the lows last friday on the back of heavily crowded perp shorts,” Wintermute desk strategist Jasper De Maere wrote in an emailed note. “It’s likely the market will continue to whip across this range as its still in price discovery.“

Major figures appear to remain bullish. Speaking at Consensus Hong Kong, Tom Lee, chief investment officer of Fundstrat and chairman of ether treasury firm BitMine Immersion (BMNR), told investors they should look for entry points rather than try to time a bottom.

On CNBC, Michael Saylor, executive chairman of bitcoin treasury firm Strategy (MSTR), reiterated his long-term bet on the cryptocurrency, saying he expects it to outperform traditional equities despite the drawdown.

Weak U.S. retail sales have moderately lifted U.S. interest rate-cut expectations and weighed on the dollar. Now, attention will switch to today’s nonfarm payrolls figures and inflation data, which could further influence risk appetite. Stay alert.

Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today

What to Watch

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead”.

  • Crypto
    • Feb. 11: Immutable to complete the merge of Immutable X and Immutable zkEVM.
  • Macro
    • Feb. 11, 8:30 a.m.: U.S. nonfarm payrolls for January Est. 70K (Prev. 50K)
    • Feb. 11, 8:30 a.m.: U.S. unemployment rate for January Est. 4.4%(Prev. 4.4%)
    • Feb. 11, 8:30 a.m.: U.S. average hourly earnings for January YoY Est. 3.8% (Prev. 3.6%)
  • Earnings (Estimates based on FactSet data)

Token Events

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead”.

  • Governance votes & calls
    • Feb. 11: Ripple to host XRP Community Day on X Spaces discussing XRP adoption, regulated finance and innovation.
  • Unlocks
    • Feb. 11: to unlock 0.32% of its circulating supply worth $14.33 million.
  • Token Launches
    • Feb. 11: Coinbase to list RaveDAO (RAVE), DeepBook (DEEP), and Walrus (WAL).

Conferences

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead”.

Market Movements

  • BTC is up 0.25% from 4 p.m. ET Tuesday at $66,868.63 (24hrs: -3.14%)
  • ETH is down 2.96% at $1,947.84 (24hrs: -3.25%)
  • CoinDesk 20 is down 2.75% at 1,900.89 (24hrs: -3.53%)
  • Ether CESR Composite Staking Rate is up 1 bp at 2.83%
  • BTC funding rate is at -0.0023% (-2.536% annualized) on Binance
  • DXY is down 0.3% at 96.50
  • Gold futures are up 1.73% at $5,117.80
  • Silver futures are up 6.22% at $85.39
  • Nikkei 225 closed up 2.28% at 57,650.54
  • Hang Seng closed up 0.31% at 27,266.38
  • FTSE is up 0.50% at 10,405.94
  • Euro Stoxx 50 is down 0.41% at 6,022.26
  • DJIA closed on Tuesday up 0.1% at 50,188.14
  • S&P 500 closed down 0.33% at 6,941.81
  • Nasdaq Composite closed down 0.59% at 23,102.47
  • S&P/TSX Composite closed up 0.71% at 33,256.83
  • S&P 40 Latin America closed down 0.57% at 3,746.47
  • U.S. 10-Year Treasury rate is down 1 bps at 4.135%
  • E-mini S&P 500 futures are unchanged at 6,966.50
  • E-mini Nasdaq-100 futures are unchanged at 25,218.00
  • E-mini Dow Jones Industrial Average Index futures are up 0.13% at 50,338.00

Bitcoin Stats

  • BTC Dominance: 59.12% (-0.29%)
  • Ether-bitcoin ratio: 0.02914 (-0.81%)
  • Hashrate (seven-day moving average): 1,002 EH/s
  • Hashprice (spot): $33.56
  • Total fees: 2.6 BTC / $179,640
  • CME Futures Open Interest: 120,785 BTC
  • BTC priced in gold: 13.1 oz.
  • BTC vs gold market cap: 4.46%

Technical Analysis

Chart of bitcoin price and 200-week exponential moving average.
  • BTC/USD is currently hovering below the 200-week exponential moving average, a critical support level that must be reclaimed to prevent further downside.
  • The market now awaits the weekly close to confirm whether this breach marks a definitive breakdown or a temporary deviation.

Crypto Equities

  • Coinbase Global (COIN): closed on Tuesday at $162.51 (-2.83%), -3.39% at $157.00 in pre-market
  • Circle Internet (CRCL): closed at $59.75 (-0.58%), -1.84% at $58.65
  • Galaxy Digital (GLXY): closed at $21.19 (+0.19%), -1.75% at $20.82
  • Bullish (BLSH): closed at $32.05 (+0.00%), -1.68% at $31.51
  • MARA Holdings (MARA): closed at $7.66 (-4.96%), -3.13% at $7.42
  • Riot Platforms (RIOT): closed at $14.83 (-0.94%), -2.29% at $14.49
  • Core Scientific (CORZ): closed at $18.13 (-2.26%), -2.48% at $17.68
  • CleanSpark (CLSK): closed at $10.03 (-1.57%), -2.49% at $9.78
  • CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $42.62 (-2.76%)
  • Exodus Movement (EXOD): closed at $10.86 (+1.12%)

Crypto Treasury Companies

  • Strategy (MSTR): closed at $133.00 (-3.93%), -3.12% at $128.85
  • Strive (ASST): closed at $9.18 (-9.51%), -3.27% at $8.88
  • SharpLink Gaming (SBET): closed at $6.65 (-6.47%), -0.60% at $6.61
  • Upexi (UPXI): closed at $0.98 (-7.14%), +1.96% at $0.99
  • Lite Strategy (LITS): closed at $1.03 (-1.90%)

ETF Flows

Spot BTC ETFs

  • Daily net flows: $166.5 million
  • Cumulative net flows: $54.98 billion
  • Total BTC holdings ~1.27 million

Spot ETH ETFs

  • Daily net flows: $13.8 million
  • Cumulative net flows: $11.91 billion
  • Total ETH holdings ~5.84 million

Source: Farside Investors

While You Were Sleeping

Ethereum Whales Accumulate Aggressively as ETH Price Drops Below $2K

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Ethereum accumulation addresses have witnessed a surge in daily inflows since Friday, suggesting growing confidence in Ether’s (ETH) long-term price trajectory despite its latest drop below $2,000.

Key takeaways:

  • Ether’s drop below $2,000 has left 58% of addresses with unrealized losses.

  • Accumulation addresses have absorbed about $2.6 billion in ETH over five days.

  • Key Ether levels to watch below $2,000 include $1,800, $1,500, $1,200, and potentially $1,000-$750 in extreme scenarios.

58% of Ether addresses are now in the red

Ether’s 38% drop over the last month has seen it fall below key support levels, including the average entry price of accumulation addresses, the cost basis of spot Ethereum ETF investors, and the psychological level at $2,000. 

The ETH/USD pair now trades 60.5% below its all-time high of $4,950, leaving a significant portion of holders underwater. This includes BitMine, the world’s largest Ethereum treasury ​​linked to investor Tom Lee, which saw its paper losses swell to over $8 billion.

Related: Large demand zone below $2K ETH price gives signal on where Ether may go

With ETH trading at $1,954 on Wednesday, only 41.5% Ethereum addresses are in profit, while over 58% are in the red.

Ethereum: Addresses in profit, %. Source: Glassnode

Ether’s current market price is also below the average cost basis of accumulation addresses currently at $2,580, suggesting that long-term holders are increasingly under strain. 

Ethereum: Realized price for accumulation addresses. Source: CryptoQuant

ETF investors are also feeling the pressure. James Seyffart, senior ETF Analyst at Bloomberg, highlighted that Ethereum ETF holders are currently in a worse position than their Bitcoin counterparts. 

With ETH hovering below $2,000, the altcoin trades well below the estimated average ETF cost basis of about $3,500.

Source: X/James Seyffart

Ether accumulation absorbs 1.3 million ETH in five days

Despite the sharp downturn, investor confidence has not fully eroded. Data from CryptoQuant showed Ethereum accumulation addresses have received 1.3 million Ether worth about $2.6 billion at current rates. 

 The “full-scale accumulation” of ETH began in June 2025, and is “proceeding even more aggressively,” CryptoQuant analyst CW8900 said in Wednesday’s Quicktake analysis, adding:

“​​The current price will likely appear attractive to $ETH whales.”

 

ETH inflows into accumulation addresses. Source: CryptoQuant

As a result, the total ETH held by these long-term holders has reached a record 27 million. That marks a 20.36% gain so far in 2026 despite the ETH price declining 34.5% over the same period.

Cryptocurrencies, Ethereum, Markets, Market Analysis, Altcoin Watch
ETH balance held by accumulation addresses. Source: CryptoQuant

Accumulation addresses are wallets that continuously receive ETH without making any outgoing transactions. They may belong to long-term holders, institutional investors, or entities strategically accumulating Ether rather than actively trading.

Large spikes in inflows to these addresses often signal strong confidence in Ether’s long-term potential, with past trends showing that such surges frequently precede price rallies.

For example, on June 22, 2025, Ethereum accumulation addresses recorded a then-all-time high daily inflow of over 380,000 ETH. Nearly 30 days later, ETH’s price rose by almost 85%. A 25% price rally followed November 2025’s inflow spike into the accumulation addresses.

Key ETH price levels to watch below $2,000

The ETH/USD pair extended its losses below $2,000, a key support level, which the bulls must reclaim to prevent further downside.

“$ETH failed to hold above the $2,000 level and is now going down,” crypto analyst Ted Pillows said in an X post on Wednesday, adding:

“The next key level is around the $1,800-$1,850 level if Ethereum doesn’t reclaim the $2,000 level soon.”

ETH/USD daily chart. Source: Ted Pillows

Fellow analyst Crypto Thanos shares similar views, telling followers to “get ready” for a $1,500 ETH price if $2,000 is not reclaimed by the end of the week.

Zooming out, LadyTraderRa said Ether is “definitely going” to retest the $750-$1,000 zone, based on past price action on the monthly candle chart. 

ETH/USD monthly chart. Source: LadyTraderRa

Glassnode’s UTXO realized price distribution (URPD), which shows the average prices at which ETH holders bought their coins, reveals that below $2,000, key support levels for ETH sit at $1,880, $1,580 and $1,230.

ETH: UTXO realized price distribution (URPD). Source: Glassnode

As Cointelegraph reported, the ETH/USD pair could drop to $1,750 and then $1,530, after failing to hold above $2,100.