Hong Kong Hedge Funds, or TradFi Cross-Asset Whales?
Market Turmoil Sparks Rumors
In early February 2026, the crypto market saw a sharp correction, with Bitcoin briefly falling to around $60,000, its lowest level since November 2024. The selloff closely coincided with cross-asset deleveraging across traditional financial markets: equities declined markedly, while precious metals also suffered steep losses — silver posted one of its largest single-day declines on record, while gold saw its largest one-day drop since the early 1980s. Analysts broadly attributed the crypto downturn to rising macro uncertainty (such as reports of a more hawkish candidate for Federal Reserve chair) and large ETF outflows.
Against this backdrop, a narrative began circulating on crypto social media…
