BlockBeats News, February 9 — According to The Block, Bitcoin suddenly plummeted over 20% this week, although prices have partially recovered since. Several crypto fund managers stated that this drop caught them off guard. Zaheer Ebtikar, Founder and Chief Investment Officer of Split Capital, said: “I think almost no one truly expected such a rapid wave of panic selling.” A common view among interviewees is that the issue wasn’t caused by a single clear trigger, but rather by the speed of the market collapse: sentiment quickly shifted, panic indicators soared, a large volume of spot sales triggered chain reactions of liquidations, resulting in a cascade of declines.
L1D AG Co-Founder and Managing Partner Ray Hindi said: “Many traditional finance (TradFi) related themes became excessively stretched and crowded during January. The subsequent sharp deleveraging and retracement will transmit shocks to the crypto market, which is still dealing with serious, unresolved structural issues left over from the October 10 liquidation event.” He believes this decline also reflects a process of structural cleanup in the market. This reshuffling helps eliminate excesses and allows truly useful projects to stand out.
Cosmo Jiang, General Partner at Pantera Capital and head of the company’s liquid token strategy, said that recent volatility is part of the trend accumulated over the past few months. He pointed out that since December 2024, the non-Bitcoin token market has actually been in a bear market, describing this year’s trend so far as a “rolling bear market” that continues across most altcoins. Due to the spreading pressure on risk assets and accelerated selling pressure, traders who previously shifted to precious metals are now selling crypto assets to meet margin requirements.
Expectations for altcoins to outperform the market remain subdued. Most investment managers say the market is shifting toward high-quality, fundamentals-driven investments. Joscha Kuplewatzky of Wintermute Ventures stated that the market may currently be in the late stage of the cycle, making it unsuitable to bet on altcoins outperforming overall. He believes that unless retail investors become active again, any upward movement is more likely to be short-term and sector-specific. Additionally, several investors noted that cryptocurrencies are no longer the first choice for new capital.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Will the 2026 U.S. midterm elections become a key turning point for Bitcoin? Historical data shows that BTC bear market bottoms often occur before and after major elections.
As the 2026 U.S. midterm elections approach, the market is paying attention to their impact on Bitcoin's price movement. Historical data shows that midterm election years are usually accompanied by market weakness, with Bitcoin experiencing an average decline of 56%. However, the market tends to recover significantly after the elections, with both the S&P 500 and Bitcoin rebounding. Analysts believe that the second half of 2026 could become a key milestone for the Bitcoin market, but caution is advised regarding new impacts brought by changes in market structure.
GateNews7m ago
Bitcoin surpasses $70,000, currently trading at $70,070
Gate News Report, March 12 — According to market data, Bitcoin broke through the $70,000 mark, currently priced at $70,070.
GateNews15m ago
Dormant Wallet Withdraws 343 BTC Worth $23.85M from CEX After 2-Year Hiatus
Gate News bot message, a wallet address 37ije2 that remained inactive for 2 years withdrew 343 BTC valued at $23.85 million from a centralized exchange in the past 2 hours.
GateNews19m ago
Metaplanet Launches Bitcoin Investment Arm With ¥4B Plan
Japanese investment firm Metaplanet has announced a new step in its crypto strategy. The company plans to launch two new subsidiaries. It focused on expanding its Bitcoin ecosystem and digital finance services. The move includes a ¥4 billion investment plan over the next few years. The funds will su
Coinfomania41m ago
Three men conspired to steal nearly $7 million worth of crypto assets from the SafeX platform, with the main culprit sentenced to 2 years in Singapore
Three men conspired to steal over $6.9 million in cryptocurrency from the SafeX trading platform, and 38-year-old Chinese man Zhang Xinghua was sentenced to two years for money laundering. The police have frozen $2.1 million in cryptocurrency, and the remaining $4.8 million cannot be recovered because it is stored in offshore wallets.
GateNews1h ago
Glassnode: Since late January, the spot trading volume of the top 500 cryptocurrencies has continued to decline
Gate News Report, March 12 — Glassnode data shows that since late January, the total spot trading volume of the top 500 cryptocurrencies has been continuously declining. Meanwhile, Bitcoin spot trading volume has been more resilient and has continued to grow for most of February.
GateNews1h ago
