Analysis: The recent pullback in the crypto market may be influenced by traditional financial factors, not industry-specific issues

On February 11, CoinDesk reported that several industry insiders have noted the recent crypto market slump is a **traditional finance-driven event** rather than a crypto industry crisis. As yen interest rates climb, borrowing costs rise—and heightened volatility has pushed margin requirements higher. For instance, margin requirements for metal trading have jumped from 11% to 16%, forcing some traders to liquidate positions. This has exerted downward pressure on cross-market risk assets—not just crypto. While Bitcoin ETFs saw active trading amid the slump, industry insiders emphasize this does not signal a full-scale exodus of institutional investors. Emma Lovett, Head of DLT Credit at JPMorgan Markets, noted that a more lenient U.S. policy landscape is fueling experiments ranging from private chains to public chains and stablecoin settlements. By 2026, the integration of traditional finance (TradFi) and crypto infrastructure is expected to deepen further.