Odaily News: Huobi founder Li Lin stated in a post that he is not an investor in LD or Garrett Gin and did not reduce his holdings of Bitcoin or Ethereum during this market cycle. He emphasized that external parties should not associate the relevant market rumors with him. He mentioned that although he has been resting for many years, he still needs to clarify such rumors almost every year.
Odaily News Bitwise advisor Jeff Park published an analysis reviewing the sharp decline in Bitcoin and the broader crypto market on February 5th. He suggests the volatility was more likely triggered by risk unwinding within the traditional financial system and derivative mechanisms, rather than by crypto industry fundamentals or a single "black swan" event.
Jeff Park pointed out that on that day, Bitcoin ETFs, particularly IBIT, saw record-breaking trading volume and options activity, with options trading heavily skewed towards the put side. Concurrently, Bitcoin's price action had shown a high correlation with risk assets like software stocks in the preceding weeks. February 4th was marked by Goldman Sachs' Prime Brokerage (PB) division as a day of extreme drawdowns for multi-strategy funds, followed by rapid, indiscriminate deleveraging demands from risk management. This process impacted Bitcoin-related positions and further amplified the decline on February 5th.
He analyzed that despite the price dropping over 13% at one point within two days, while the market initially anticipated massive ETF outflows, actual data showed Bitcoin ETFs overall recorded net inflows instead. IBIT added approximately 6 million new shares, increasing its size by over $230 million. This indicates the selling pressure primarily came from "paper money" and non-directional trades related to hedging and market-making, rather than a withdrawal of long-term capital.
Jeff Park further hypothesized that multi-asset portfolios were forced to deleverage in a high-correlation environment, which included hedged Bitcoin exposure; rapid unwinding of options and basis trades triggered a short gamma effect, forcing counterparties to sell IBIT during the decline, thereby exacerbating volatility, but this did not lead to substantial long-term capital outflows. As some neutral strategies covered their positions on February 6th, the Bitcoin price rebounded.
He concluded that this round of decline is more likely the result of a resonance between traditional financial system risk management and derivative mechanisms, rather than a structural deterioration within the crypto market itself. Changes in ETF net flows in the following days will serve as a crucial observation indicator for determining whether there is new, sustained long-term demand.
Odaily News Bitwise advisor Jeff Park posted a clarification regarding recent market rumors, stating that the claim "Nasdaq has canceled IBIT options position limits, thereby giving Wall Street unlimited leverage" is not true.
Jeff Park stated that the so-called "cancellation of standard limits on crypto assets" does not equate to "having no limits whatsoever." Instead, it is about correcting the previously imposed non-standard, discriminatory rules on crypto assets. The actual content of the relevant document is a proposal to cancel the 25,000 options position cap for FBTC, ARKB, HODL, and Ethereum ETFs, aligning them with the current standard 250,000 position cap applicable to IBIT and BITB, in order to achieve fair competition at the regulatory level.
He further pointed out that the application to increase IBIT's options position limit to 1 million was indeed submitted last November but has not yet been approved. Jeff Park also reminded investors to maintain the habit of independent verification (DYOR), should not readily believe unverified market interpretations, and can personally confirm through the OCC database that the current options position limit for IBIT remains at 250,000.
Odaily News One of the Big Four accounting firms, Ernst & Young (EY), stated that wallets are evolving from crypto tools into the core entry point for the next generation of financial systems. It pointed out that "the wallet itself is the strategy; whoever controls the wallet controls the customer relationship." EY analyst Mark Nichols noted that wallets will become key infrastructure for storing, transferring, and managing tokenized assets. In the future, they will not only be applicable to crypto assets but will also cover on-chain financial scenarios such as payments, stablecoins, and private credit, becoming a unified entry point connecting all on-chain financial activities including payments, tokenized assets, and stablecoins. However, EY expects self-custody wallets will struggle to become mainstream, and the future market will be dominated by trusted wallet service providers such as banks, fintech companies, and professional custodial institutions. (CoinDesk)
Odaily News According to Onchain Lens monitoring, a wallet labeled "Gnosis Safe" withdrew 20,520 ETH from Binance, valued at $41.92 million.
Odaily News Tether has frozen over $544 million in crypto assets at Turkey's request, with the funds linked to a suspected illegal online gambling and money laundering network. Data from analytics firm Elliptic shows that by the end of 2025, Tether and Circle had blacklisted approximately 5,700 wallets, freezing a total of about $2.5 billion, of which roughly two-thirds were USDT. Tether CEO Paolo Ardoino stated that the company took freezing action based on information provided by law enforcement, in accordance with the law. This cooperation is part of Tether's global compliance efforts, and the company has previously collaborated with agencies such as the U.S. Department of Justice and the FBI. (Cointelegraph)
Odaily The crypto community is divided on Bitcoin's short-term trajectory, with some analysts warning of potential new lows, while other traders are already targeting $84,000. Details are as follows:
1. Keith Alan, co-founder of Material Indicators, stated that the BTC price bottom has not yet been reached, and the current primary task is capital preservation. Keith Alan pointed out that the $69,000 high from 2021 is crucial in the current relief rally. While $60,000 was yesterday's support, it is highly likely that prices will fall to lower levels before the bull market returns.
2. Rekt Capital believes historical trends suggest BTC still has room to fall. After reaching a bull market peak in the fourth quarter of the post-halving year, BTC often experiences months of a relief rally, followed by a break below the macro triangle bottom and entry into an accelerated decline phase. The current cycle is the fourth consecutive one to align with this historical tendency.
3. Analyst Michaël van de Poppe offered a different perspective, stating that he expects market prices to rebound to fill the CME gap, with the potential for continued gains above $75,000 next week.
4. Samson Mow, CEO of JAN3, stated that BTC will soon fill the $84,000 CME futures gap. He also highlighted the significance of large corporations' ability to purchase BTC as a reserve asset. (Cointelegraph)
Odaily News As early as last June, "Trump Mobile Company," part of U.S. President Trump's vast business empire, announced the launch of the "Trump T1" phone. By now, people had almost given up hope of seeing it come to market. However, a new report suggests it will eventually reach consumers. According to an interview with U.S. tech media The Verge, company executives stated that there are still some planned modifications for this phone, such as removing the T1 logo. The American flag and gold color scheme on the back cover will still be retained. The specifications for the screen and camera will also be upgraded. The company's executives said that to reflect the "improvement in quality," the price will be increased. Some users who have already paid a $100 deposit will still need to pay the final $499 balance, while customers purchasing later will face a higher price, but "it will not exceed $1,000." The company has also retracted its previous statement about the phone being manufactured in the U.S., now saying that the "final assembly" of the phone will be completed in the United States, while most of the manufacturing process will take place elsewhere, though no one disclosed the specific location. (Jin10)
Odaily News According to statistics from Lookonchain, Yi Lihua's leveraged long position on ETH in this round resulted in a total loss of approximately $747 million.
