Experts point to the TradFi sector and AI as responsible for Bitcoin's collapse

According to several experts, the price of Bitcoin plummeted last week following a wave of adjustments in traditional markets and the end of the global tech boom. Although the price has since recovered, institutional distrust persists and keeps the market on edge.

The current instability in the cryptocurrency ecosystem, which led the main asset to test levels of $60.000 on February 5, is due to a complex interaction of macroeconomic and technical factors unrelated to the internal architecture of the market. 

Analysts from high-profile investment firms, such as Bitwise and VanEck, suggest that the pullback in Bitcoin's price was not caused by systemic failures in the protocol's structure or its blockchain, but by a strategic withdrawal of liquidity from traditional financial markets (TradFi) and a recalibration of global technology bets. 

Although the price of Bitcoin managed to recover ground and It currently exceeds $71.000The atmosphere remains marked by distrust. The Fear & Greed Index remains at minimal levels, barely 5 points out of 100, a clear sign that market perception has not yet kept pace with the recovery in the price of BTC nor does it reflect firm conviction among institutional investors.

The forces that shook the crypto market

Jeff ParkBitwise strategist argues that the February 5th event was fundamentally a phenomenon of risk transfer from conventional finance to the digital sector. 

According to their analysis, multi-asset portfolios were forced to execute aggressive sales to reduce their exposure to overall volatility, impacting Bitcoin positions that served as hedges. From their perspective, this liquidation was not a response to negative news specific to the crypto industry, but rather a technical necessity to maintain the integrity of internal risk models in hedge funds. 

In an extensive publication In X, Park explained that the pressure on the price of Bitcoin intensified due to gamma effects in the options market, which amplified a movement that he defines as a temporary market inefficiency and not as a structural rupture.

“First, I am inclined to believe that the catalyst was driven by the massive software sell-off, given the close correlation it is showing even against gold.”Park noted in his post. 

For its part, Matthew SigelVanEck, an executive at VanEck, identifies the decline in enthusiasm for Artificial Intelligence as a collateral, but decisive, catalyst for the fall in the crypto market. 

Sigel argues that uncertainty surrounding the true profitability of massive investments in AI infrastructure has directly impacted Bitcoin mining companies. Many of these organizations had diversified their operations into high-performance computing to capitalize on the technological boom. However, as financing conditions tightened and optimism about AI faded, cryptocurrency miners were forced to liquidate their Bitcoin holdings to strengthen their balance sheets and sustain operations, injecting a massive supply into an already fragile market.

Bitcoin and the market adjust

The collapse of Bitcoin and cryptocurrencies last week was also fueled by leverage metrics that reached unsustainable levels. 

Market data indicates that open interest in Bitcoin futures contracts fell from $61.000 billion to $49.000 billion in a single week, a drop of over 20%. Compared to the peak of $90.000 billion recorded in October, the market has purged almost 45% of the borrowed capital. According to experts, this massive contraction of leverage It usually acts as a necessary cleansing mechanism within the 4-year cycle patterns that historically govern Bitcoin's behavior, where periods of euphoria are followed by drastic corrections that reset the investor's psychology.

Adding to this scenario is an emerging concern about long-term security: quantum computingAlthough the developer community remains skeptical about the immediacy of this threat, institutional investors have begun to assess the risk that machines with superior computing power could compromise the current encryption models that govern the crypto market.  

Recent reports suggest that a significant portion of circulating cryptocurrencies, including Bitcoin, could be exposed to this technological advancement. However, the paradox lies in the fact that the shares of companies dedicated to quantum technology have also declined, which, according to experts, reinforces the theory that the current capital movement is a general retreat from riskier assets to more liquid ones.

Bitcoin ETFs showed their maturity in a tense market

Despite the recent Bitcoin price correction, this did not prevent spot exchange-traded funds (ETFs) listed on US exchanges from showing surprisingly stable performance. Despite the climate of uncertainty and the selling pressure that accompanied the BTC decline, these cryptocurrency ETFs maintained an active flow of capital, reflecting a stronger base of confidence among institutional investors.

During the days of greatest selling pressure, some of these financial instruments registered net inflows exceeding $300 million, suggesting that long-term investors interpreted the adjustment to $60.000 per BTC as a technical opportunity, rather than a sign of market fragility. 

Finally, for analysts, this dynamic confirms that Bitcoin is undergoing a consolidation phase within the global financial system. Its behavior is increasingly mirroring that of major traditional assets, from stocks to corporate bonds. While its volatile nature remains unchanged, its role in the 2026 economic landscape appears to be secured as a structural component of the international market.