Tag Archives: institutional

Why institutional money isn’t saving crypto from this sell-off

Why institutional money isn’t saving crypto from this sell-off

While traditional equity markets celebrated a historic relief rally, the cryptocurrency market posted a 1.42 per cent decline, settling at US$2.41T. This divergence tells a compelling story about the maturing yet still volatile nature of digital assets. As Wall Street surged on news of a temporary peace deal between the US and Iran and promises to reopen the Strait of Hormuz, crypto investors chose to lock in profits and unwind leveraged positions rather than join the broader risk-on celebration.

The contrast between these markets could not be starker. The Dow Jones Industrial Average logged its best day since April 2025, jumping 2.85 per cent to 47,910.79. The S&P 500 climbed 2.51 per cent to 6,782.83, and the Nasdaq surged 2.80 per cent to 22,635.00. Crypto showed a 69 per cent correlation with the S&P 500 and an even stronger 77 per cent correlation with Gold, which climbed to US$4,800 per ounce. Digital assets underperformed significantly despite these correlations. Internal market dynamics within the crypto ecosystem overpowered the positive macroeconomic backdrop that sent traditional markets soaring.

The primary culprit behind crypto weakness was a broad-based altcoin sell-off accompanied by aggressive unwinding of leverage. The Altcoin Season Index plummeted 12.82 per cent over the past week, signalling a clear rotation of capital away from higher-beta, riskier assets. Sectors such as the Binance Ecosystem and tokens under SEC or CFTC scrutiny fell approximately 1.6 per cent to 1.75 per cent, underperforming the broader market. This was not a panic-driven exodus triggered by negative news, but rather a calculated reduction in speculative exposure after recent gains.

Derivatives data reveals the mechanics of this de-risking. Bitcoin saw US$74.66M in liquidations over the past 24 hours, with short liquidations dominating. This indicates that leveraged positions were forcibly closed as traders scrambled to reduce exposure. Such forced liquidations often create cascading effects, amplifying downward pressure as margin calls trigger additional selling. The market essentially experienced a healthy flush of excess leverage, removing the frothy speculative positions that had built up during the recent rally.

Institutional demand, while still present, showed signs of cooling just when the market needed fresh capital inflows to counteract the profit-taking wave. Morgan Stanley’s spot Bitcoin ETF launch drew US$34M in day-one inflows, a respectable start but insufficient to offset the broader outflow pressure. The Fear and Greed Index sat at a neutral 43, representing a significant cooling from fear levels recorded last month. This neutral sentiment reflects a lack of the strong bullish conviction needed to push prices higher amid widespread profit-taking.

The timing of this crypto correction amid traditional market euphoria reveals an important maturation in the way digital assets respond to macroeconomic events. While equities rallied on the geopolitical breakthrough that sent crude oil prices plunging 16 per cent to US$94.41 a barrel, crypto investors appeared more focused on technical levels and internal market structure. The US Dollar Index, retreating 1.17 per cent to 98.6 points, and the 10-year Treasury yield, holding steady at 4.30 per cent, created a generally favourable macro backdrop, yet crypto remained constrained by its own internal dynamics.

Traditional market sector performance highlighted the dramatic shift in sentiment. Commercial airlines enjoyed robust gains as fuel cost concerns receded. Delta advanced 3.8 per cent, United climbed 7.9 per cent, and Carnival surged 11.2 per cent. The Energy sector was the sole laggard, down 3.7 per cent due to a plunge in crude oil prices. Asian markets showed mixed reactions. Japan Nikkei 225 rose to 56,395 points on April 9, gaining 0.15 per cent. The index has rebounded roughly four per cent month-to-date after a brutal March selloff caused by energy supply fears. Hong Kong Hang Seng volatility remains high, with recent data showing the index struggling to hold gains above the 25,000 level.

Commodities reflected the dramatic geopolitical shift. Benchmark US oil WTI plummeted 16 per cent to approximately US$94.41 per barrel, a drop reminiscent of the depths of the pandemic. Spot gold climbed to roughly US$4,800 per ounce while silver prices fell slightly on April 9 to US$73.49, down 0.85 per cent from the previous day. Currency markets saw the US Dollar Index retreat to 98.6, down 1.17 per cent, as geopolitical risk premiums unwound. Fixed income markets remained relatively stable with the US 10-year Treasury yield holding steady at 4.30 per cent on April 9.

Looking ahead, the market’s near-term health hinges on Bitcoin stabilising above the critical US$2.39T support level, which represents the 50 per cent Fibonacci retracement. A sustained break below this threshold could trigger a swift move toward US$2.34T at the 78.6 per cent Fibonacci level, particularly if ETF flows remain subdued. Conversely, a rebound above US$2.45T, the 38.2 per cent Fibonacci level, would signal that bullish control has been regained.

All my retail investor friends are eyeing April 16, when the SEC holds its roundtable on the CLARITY Act. They are hopeful that this regulatory development could provide the catalyst needed to shift sentiment and override the current technical weakness. The market finds itself in a corrective consolidation phase, where the flush of excess leverage and rotation out of altcoins represents a healthy reset rather than a fundamental breakdown.

For me, I think it’s “priced-in” already.

 
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Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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While S&P 500 struggles, crypto’s low correlation to gold and stocks attracts institutional attention

While S&P 500 struggles, crypto’s low correlation to gold and stocks attracts institutional attention

The crypto market’s modest advance of 0.51 per cent to a total capitalisation of US$2.3T over the last 24 hours represents more than a simple price fluctuation. It signals a market beginning to price in a fundamental shift in its operating environment. This move appears internally driven rather than a reflexive follow-through from traditional finance. Correlation data support this view.

The crypto market’s relationship with the S&P 500 is negligible at 0.8 per cent, while its tie to Gold is low at 15 per cent. This decoupling suggests capital is responding to crypto-specific catalysts, primarily a growing conviction that the United States regulatory landscape may finally be evolving. This moment feels familiar yet distinct. We have seen false dawns before, but the current momentum behind the CLARITY Act carries a different weight, one that markets are increasingly willing to bet on.

The primary engine of this cautious optimism is the rising likelihood that the CLARITY Act will become law. Prediction market Polymarket now reflects an 85 per cent chance of passage, a figure cited by industry leaders like Ripple CEO Brad Garlinghouse, who points to a potential timeline by April 2026. This is not merely a political statistic. It represents a potential removal of the single greatest overhang on institutional capital allocation.

A clear legal framework does more than just provide compliance checklists. It enables the construction of long-term valuation models that investors could not build under a regime of enforcement by litigation. The market is actively discounting this reduced uncertainty.

A critical perspective remains essential. Legislative odds can shift rapidly. True progress requires watching for concrete actions: official committee markups, bipartisan statements of support, and the actual text of proposed amendments. The next few weeks will provide crucial data points to separate genuine momentum from speculative noise.

While regulatory hopes provide the macro backdrop, capital is expressing its views with notable selectivity. The broader market’s slight gain masks a clear rotation into specific narratives. The Layer 1 category advanced 0.65 per cent, outperforming the aggregate.

Within that, infrastructure and artificial intelligence tokens demonstrated significant strength. Enso posted a gain of 35.74 per cent while Allora advanced 12.9 per cent. This pattern reveals a trader psychology that is opportunistic but not yet broadly confident. Participants are seeking alpha in defined thematic buckets rather than deploying capital indiscriminately. Sentiment data corroborates this cautious stance.

The Fear and Greed Index, while improving from a reading of 8 to 11, remains firmly in Extreme Fear territory. This combination of selective bullishness and pervasive caution defines the current tape. It suggests a market building a foundation for a potential relief rally, but one that remains vulnerable to a shift in the regulatory narrative or a broader macro shock.

The near-term technical pathway for the market hinges on two clear levels. On the upside, the total market capitalisation faces immediate resistance at the 78.6 per cent Fibonacci retracement level of US$2.35T. A sustained break above this threshold could signal a meaningful short-term trend reversal, inviting further speculative interest.

On the downside, Bitcoin’s ability to hold the US$66,000 support level is paramount. A decisive break below this price could quickly reignite the bearish sentiment that fueled the market’s 27.5 per cent decline over the past month.

These technical levels are not arbitrary. They represent the collective memory of recent price action and the current balance between buyers and sellers. Monitoring daily closes relative to the US$66,000 to US$67,000 zone for Bitcoin, alongside updates to the CLARITY Act’s legislative progress, provides a practical framework for assessing short-term direction.

The market is asking a simple question: can regulatory optimism overcome technical overhead and fragile conviction

This crypto-specific drama unfolds against a backdrop of traditional market stress, which further highlights the asset class’s evolving independence. Major US stock indices declined on Thursday, February 19, 2026, with the S&P 500 slipping 0.28 per cent to close at 6,861.89. The drivers were classic macro headwinds: geopolitical tensions between the US and Iran pushed oil prices higher, with Brent crude settling at US$71.66 a barrel, a six-month high.

Concurrently, concerns over private credit liquidity resurfaced after a major fund halted redemptions, sending shares of alternative asset managers such as Blackstone and Apollo Global Management down by more than five per cent. This news struck at the heart of the US$1.8T private credit market.

Even better-than-expected labour data, which showed initial jobless claims falling to 206,000, well below the forecast of 227,000, could not offset these fears. The data briefly pushed the 2-year Treasury yield to 3.468 per cent, reflecting complex investor calculations about growth and inflation.

In this environment, crypto’s low correlation is not just a statistical curiosity. It represents a potential portfolio diversification benefit that institutional investors are beginning to seriously evaluate, provided the regulatory path forward becomes clearer.

The current market posture, therefore, is one of cautious optimism anchored by a tangible, though not yet realised, reduction in regulatory risk. For those of us who believe in the long-term promise of decentralised systems, the path forward requires more than just favourable legislation. It demands building infrastructure and applications that deliver undeniable utility.

The current price action is a hopeful signal, but the real work of integrating these technologies into the global financial fabric continues, independent of daily price fluctuations or political odds. The market’s next move will be a test of whether this foundational work is beginning to be recognised and valued by a broader set of participants.

 

Source: https://e27.co/while-sp-500-struggles-cryptos-low-correlation-to-gold-and-stocks-attracts-institutional-attention-20260220/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Crypto market cap hits US$2.4T again: Why institutional whales are buying the dip

Crypto market cap hits US$2.4T again: Why institutional whales are buying the dip

Major US stock indices climbed on Tuesday, February 10, 2026, thanks to a strong rebound in technology shares that calmed worries about recent spending on artificial intelligence. Investors watched the S&P 500 rise 0.5 per cent to close at 6,964.82, inching nearer to the all-time high from two weeks earlier. The Nasdaq Composite, heavy with tech stocks, jumped 0.9 per cent to 23,238.67, while the Dow Jones Industrial Average barely moved, adding less than 0.1 per cent to end at 50,135.87.

This uptick came after a tough stretch last week, where tech stocks faced heavy selling. Chipmakers drove much of the recovery, with Nvidia gaining 2.4 per cent and Broadcom advancing 3.3 per cent. Oracle stood out with a sharp 9.6 per cent increase. These moves highlighted how quickly sentiment can shift in the tech sector, especially amid ongoing debates about AI investments.

Beyond US markets, international developments added to the positive tone. Japan’s Nikkei 225 reached a fresh all-time high, surging 2.8 per cent after the incumbent government secured a historic election mandate. This boost reflected growing confidence in Japan’s economic policies and stability. Treasury yields stayed calm, with the 10-year note holding near 4.20 per cent.

Traders largely ignored news that China encouraged its banks to reduce holdings of US Treasuries, suggesting that markets focused more on domestic factors. In commodities, gold dropped about 0.7 per cent to US$5,023.82 per ounce, while West Texas Intermediate oil fell 0.4 per cent to US$64.13 a barrel. Traders kept an eye on potential supply disruptions in the Strait of Hormuz, but no immediate threats materialised. Bitcoin hovered just under US$71,000, steady after briefly topping that mark over the weekend.

Attention now turns to key economic data releases. Retail sales figures arrive on Tuesday, and CPI inflation numbers follow on Friday. These reports will shape expectations for the Federal Reserve’s next interest rate move. Investors have begun shifting some funds into real-economy sectors, and demand for AI-related tech stocks remains robust, supporting overall index levels. This rotation shows a market balancing innovation hype with practical economic signals.

From my perspective, this setup feels like a fragile equilibrium. The tech rebound offers relief, but if upcoming data disappoints, volatility could return swiftly. Markets often overreact to hints of inflation, and with AI spending under scrutiny, any sign of cooling could pressure gains.

In cryptocurrencies, the market edged up 0.28 per cent to a total capitalisation of US$2.4 trillion over the last 24 hours. This modest gain marks a brief halt after a steep downtrend, aligning closely with traditional stocks. A strong 89 per cent correlation with the S&P 500 points to shared influences from broader economic relief. Bitcoin’s tentative support after a 46 per cent drawdown stands as the main driver. Selective institutional buying has helped stabilise prices.

Secondary factors include sharp pumps in smaller altcoins and slightly upbeat social sentiment around Ethereum accumulations. Looking ahead, the market’s strength depends on Bitcoin maintaining the US$65,000 to US$70,000 range. Dropping below that could push prices back to the US$60,000 yearly low.

Bitcoin’s stabilisation follows a brutal capitulation phase. The total market cap tries to hold at US$2.4 trillion after plummeting 46 per cent from its October 2025 peak. This aligns with Bitcoin testing a critical historical support at the 1.25x realised price level, which historically divides regular corrections from deeper selloffs. The small uptick indicates that the intense selling from January and early February might ease, paving the way for a technical rebound.

Investors should closely monitor Bitcoin’s defence of US$65,000. A failure there might spark fresh liquidations, extending the pain. In my view, this support level acts like a psychological floor. Historical patterns suggest bounces often follow such tests, but current macro uncertainties make outcomes less predictable. The correlation with stocks amplifies risks, as any equity dip could drag crypto lower.

Speculative activity and changes in sentiment add layers to the recovery. While the overall market stayed flat, low-cap altcoins like GPS, AXS, and ZKP surged 20 per cent to 75 per cent on large volume. This shows capital flowing into riskier bets for fast profits, though it falls short of a full altcoin rally. Social sentiment for assets like Ethereum improved to a mildly bullish 4.83 out of 10. On-chain data reveals significant accumulations by major players, such as Bitmine.

For instance, Bitmine, linked to Tom Lee of Fundstrat, recently acquired another 20,000 ETH valued at US$41.08 million from FalconX’s hot wallet. This transaction, highlighted in on-chain tracking, fits a pattern of inflows. Just six days earlier, Bitmine received another 20,000 ETH worth US$46.04 million from the same source. Over the past two weeks, additional batches included 40,320 ETH at US$113.39 million, 38,400 ETH at US$107.99 million, 30,720 ETH at US$86.39 million, another 38,400 ETH at US$107.99 million, 28,800 ETH at US$80.99 million, 26,880 ETH at US$75.59 million, 30,720 ETH at US$86.39 million, 34,560 ETH at US$97.19 million, and 23,040 ETH at US$64.79 million. These moves signal structured buying by institutions, boosting short-term confidence.

Community reactions underscore this as smart money at work. Observers note the buys as strategic positioning rather than random trades. One commenter compared it to aggressive corporate strategies in crypto, while others highlighted the scale of the accumulation amid market fear. Ethereum’s positive whale activity provides a counterweight to broader caution.

From where I stand, these accumulations reveal an underlying belief in crypto’s long-term value. Institutions like Bitmine spot opportunities in dips, betting on future growth. This contrasts with retail hesitation, resulting in an uneven recovery. If more entities follow suit, it could spark broader buying, but isolated actions might not sustain momentum on their own.

The near-term outlook remains guarded. Two key elements will determine the path: Bitcoin’s push to reclaim and defend the US$73,000 resistance level, and the flow direction in US spot Bitcoin ETFs after recent net outflows. The Fear and Greed Index sits at 10, indicating extreme fear, which often precedes relief rallies when buying picks up. Holding above US$70,000 might drive the total cap toward US$2.5 trillion over time.

Without consistent spot demand, prices could revisit last week’s lows near US$60,000. Upcoming stock market data ties in here, as retail sales and CPI could sway Fed decisions, indirectly affecting crypto through risk sentiment. My take is that this moment offers a chance for stabilisation, but fragility persists. The 46 per cent drawdown scarred investors, and rebuilding trust takes time. If Bitcoin holds its ground, we might see a slow grind higher, fuelled by tech’s AI tailwinds and institutional dips.

In conclusion, today’s market action reflects cautious stabilisation across assets. Stocks rebounded on tech strength, easing AI concerns, while crypto paused its slide with help from Bitcoin support and selective buys. The interplay between traditional and digital markets grows clearer with that 89 per cent correlation. Institutional moves, like Bitmine’s ETH hauls, inject optimism, but the outlook hinges on key levels and data.

I see potential for a relief bounce if supports hold, and I warn against overconfidence. Extreme fear levels suggest upside if sentiment flips, but macro headwinds loom. Traders should watch Bitcoin’s US$65,000 to US$70,000 zone closely, as it will dictate whether this uptick endures or fades. Overall, markets catch their breath after tough times, setting up for pivotal days ahead.

 

Source: https://e27.co/crypto-market-cap-hits-us2-4t-again-why-institutional-whales-are-buying-the-dip-20260210/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j