TechFlow News: On February 7, according to Cointelegraph, Bitcoin recently experienced a sharp sell-off, retreating over 50% from its all-time high of approximately $126,200 in October 2025. Analysts attribute this downturn to three structural factors:
1. Some observers suggest that Asian capital may have triggered this sell-off—by borrowing low-cost Japanese yen to establish highly leveraged long positions in Bitcoin ETF-related options and crypto assets. When Bitcoin’s price stalled and funding costs rose, margin calls and forced liquidations ensued, exacerbating the market decline.
2. Certain banks may have been compelled to sell assets due to risk hedging requirements for Bitcoin-linked structured products, creating a “negative gamma” effect that amplified downward momentum.
3. Some mining companies are shifting toward AI data center operations while simultaneously selling their Bitcoin holdings, thereby transforming the structural landscape of the Bitcoin mining industry.
