Bitwise @BitwiseInvest CIO @dgt10011 explains the reason behind the February 5th crash This was a classic technical sell-off triggered by TradFi risk control models. Due to the sharp drop in U.S. software stocks, multi-strategy funds were forced to deleverage, and Bitcoin, as an allocation asset, was sold off under pressure. At the same time, the options market worsened the situation. The price drop triggered market makers' Short Gamma risk, causing their put option exposure to deteriorate. Their hedging models forced them to sell more as prices fell. As for the counterintuitive IBIT net inflow, it was actually because market makers ran out of spot inventory and were forced to request new shares from BlackRock. The inflow data essentially reflects market makers acquiring liquidity to continue selling off as ammunition for their hedging.