Bitwise advisor links February 5, 2026 Bitcoin plunge to TradFi deleveraging, not crypto flaws

Bitwise advisor Jeff Park argues that the sharp Bitcoin sell-off on February 5, 2026, when BTC briefly hit $60,000, stemmed from deleveraging in traditional finance portfolios rather than a crypto-specific shock. He says risk reduction in multi-asset strategies spilled over into hedged BTC positions and forced selling in products such as Bitwise’s Bitcoin ETF, even as spot BTC ETFs still recorded net inflows and prices rebounded in the following days. Park believes framing the move as a technical event tied to TradFi dynamics highlights Bitcoin’s maturation and may support renewed dip buying.