Crypto's latest selloff was a TradFi event, not a crypto crisis
The recent crypto selloff stemmed from macro factors in traditional finance, like unwinding yen carry trades, not an internal crypto crisis.Summary
Market participants at Consensus Hong Kong 2026 argued that the sharp crypto sell-off last week was primarily a spillover from traditional finance (TradFi) macro events, rather than a repeat of past crypto-specific scandals. A key catalyst identified was the unwinding of yen carry trades, where investors borrow cheaply in yen and invest in riskier assets like Bitcoin. As yen rates rose, borrowing costs increased, forcing some players to liquidate positions due to surging margin requirements across risk assets, including metals and crypto. While Bitcoin ETFs saw outflows, panelists suggested this indicated asset rotation rather than wholesale institutional capitulation, noting that ETFs still hold significant assets. Looking forward, experts anticipate deeper convergence between TradFi and crypto infrastructure, driven by a more permissive regulatory backdrop accelerating the use of public chains and stablecoins for traditional securities settlement in 2026.
(Source：CoinDesk)