Wall Street's Bitcoin Sell-Off Was a "February Massacre" Unlike Any Other

Bitcoin's sharp sell-off on Feb. 5 was driven by forces familiar to traditional finance, such as record trading and options activity in ETFs, derivatives dynamics, and hedging mechanics. The episode marked Bitcoin's transition into a fully integrated risk asset within global capital markets, with price action increasingly reflecting margin rules, hedging requirements, and risk controls. The rebound on Feb. 6 was equally telling, with hedged positions re-entering the market and buyers absorbing inventory created during the sell-off.