In early February 2026, the cryptocurrency market experienced a sharp downturn, with Bitcoin falling to approximately $60,000. This decline coincided with a broader deleveraging across traditional markets, driven by macroeconomic uncertainties such as the Federal Reserve chair nomination and significant outflows from ETFs. Rumors suggest that the sell-off may have been triggered by the liquidation of Bitcoin positions by large funds, potentially involving Hong Kong hedge funds or Asian TradFi institutions. Speculations include Parker's theory of early Bitcoin holders selling volatility through IBIT options, leading to a chain reaction during a crash on October 10, 2025. Franklin Bi proposes that Asian macro traders faced losses in yen arbitrage and cross-asset markets, prompting Bitcoin liquidation. Meanwhile, Li Lin denied involvement in related funds and maintained BTC/ETH positions, while Wintermute CEO Gaevoy questioned the liquidation rumors, attributing the situation to macro pressures and leverage unwinding. Arthur Hayes pointed to hedging activities related to IBIT structured products.