What Triggered the Sell-off?

Macro Stress & Rate Hawkishness: The Federal Reserve's signal that rate cuts are not imminent sent the dollar higher, triggering a global "risk-off" move.

Global Deleveraging: This wasn't just a crypto crash. Gold faced its own volatility, dropping to nearly $4,682 per ounce over the weekend before rebalancing near $4,979.

High-Profile Exits During the Panic

Vitalik Buterin's Sales: Ethereum's co-founder sold approximately 2,961 ETH (worth $6.6 million) over three days, averaging a price of $2,228. While Buterin noted these funds were earmarked for privacy tech and open infrastructure, the timing added psychological pressure to an already fragile market.

Trump Family Project Sale: World Liberty Financial (WLFI), the crypto venture linked to the Trump family, sold 73 Wrapped Bitcoin (WBTC) worth roughly $5.04 million during Thursday's flash crash. High-profile liquidations like this often exacerbate retail panic.

Liquidations and Institutional Flight

ETF Exodus: Institutional conviction wavered significantly. U.S. spot Bitcoin ETFs saw a net outflow of $358.5 million for the week ending February 6, 2026. A single-day peak of $434 million in outflows on February 5 marked one of the worst institutional exits since the ETFs launched.

Total Market Shrinkage: The total crypto market cap remains under heavy pressure, currently standing above $1.4 trillion for Bitcoin alone, as billions in value evaporated during the liquidation-driven-sell-off.

Where Sentiment Stands

The Crypto Fear & Greed Index crashed into the "Extreme Fear" zone, reaching levels as low as 14 to 17 in early February. Historically, such deep fear indicates that assets may be oversold, often marking high-probability entry points for disciplined investors.

Market Snapshot (February 9, 2026):

$BTC Bitcoin: ~$71,174

$ETH Ethereum: ~$2,126

$SOL Solana: ~$87.51

#Gold (Spot): ~$4,979

Fear & Greed Index: 17 (Extreme Fear)

Is this the perfect time for a discounted purchase, or a tactical cashout? Historically, the biggest edges emerge when the crowd is most afraid.