Published: February 2, 2026
On February 1–2, 2026, Vida — founder of Equation News and a prominent Chinese crypto commentator — publicly disclosed that she had significantly reduced or fully exited her Ethereum (ETH) position. The move was explicitly motivated by growing concerns that weakness in US equities (particularly Nasdaq and growth/tech stocks) could trigger a broader risk-off contagion into cryptocurrency markets.
Her announcement came at a particularly sensitive moment: ETH was already down more than 20% from December 2025 highs, Bitcoin had briefly tested below $80,000, and the crypto futures market had just suffered its largest single-day liquidation event since October 2025 ($2.2 billion wiped out on Feb 1). While Vida’s personal portfolio adjustment is relatively small in absolute terms, it served as a high-visibility warning flare for two increasingly discussed risks in 2026:
- Correlation between crypto and US equities has remained stubbornly high during risk-off episodes — especially since the 2024–2025 wave of institutional adoption.
- Many participants (retail and institutional) may still be underestimating how quickly forced selling in equities can transmit to digital assets through shared liquidity channels, prime brokers, cross-margin accounts, and similar investor bases.
This article examines the context of Vida’s ETH sell-off, the mechanics of potential stock → crypto contagion, current market data (liquidations, ETF flows, sentiment), technical levels for ETH and BTC, and practical positioning strategies on Tapbit for traders navigating this heightened cross-asset risk environment.
What Vida Actually Said – Context & Timing of the ETH Sale
In a widely circulated X thread and follow-up media snippets (late Jan 31 – early Feb 1, 2026), Vida outlined her reasoning:
- She had built an ETH position throughout late 2025, viewing it as a high-conviction bet on L2 scaling, staking yield normalization, and Ethereum’s long-term infrastructure dominance.
- Recent US equity weakness — Nasdaq’s 2.6% intraday drop on renewed Iran rhetoric, continued rotation out of growth names, and signs of exhaustion after a multi-year run — prompted her to reassess correlation risks.
- She believes the crypto market is still under-pricing the speed and severity with which equity drawdowns can transmit to digital assets via shared liquidity pools, margin facilities, and overlapping investor bases.
- Key quote: “I’m not calling the top on crypto — I’m calling the risk of correlated drawdowns higher than most current models are pricing.”
The disclosure gained significant traction in Chinese crypto media (PANews, WuBlockchain, etc.) before spreading to English-language outlets and trading communities. While she did not disclose exact position size, entry/exit prices, or remaining exposure, the timing — right as ETH broke key supports and liquidations spiked — amplified its perceived weight as a sentiment signal.
How US Stock Weakness Can Spill Over into Crypto in 2026
Since the 2024–2025 institutional adoption wave, the correlation between crypto (especially BTC & ETH) and US equities — particularly Nasdaq — has remained elevated during risk-off periods. Several transmission channels explain why equity drawdowns quickly impact crypto:
- Shared Liquidity Providers & Prime Brokers
Many of the same funds and market-makers are active in both spot BTC/ETH ETFs and Nasdaq-listed tech/growth stocks. When equity volatility rises, these entities reduce overall risk → simultaneous de-risking across asset classes. - Cross-Margin & Portfolio Margin Accounts
A growing number of institutions and high-net-worth traders use platforms that allow cross-margining between equities and crypto collateral. Equity declines trigger margin calls → forced crypto sales. - Retail & Prop Trading Psychology
Many retail and proprietary traders allocate a single risk budget across equities and crypto. When Nasdaq corrects sharply, they cut exposure indiscriminately — including high-beta altcoins like ETH. - Macro Overlay
The same factors pressuring equities (higher real yields, stronger dollar, tariff/inflation fears) also weigh on crypto as a high-beta risk asset.
When Nasdaq corrects sharply (as seen in late Jan/early Feb 2026 episodes), the ripple effects are:
- Reduced risk appetite → lower leverage in crypto futures
- Funding rate compression or inversion → long squeeze
- ETF outflows accelerate as allocators trim correlated exposures
- Altcoins (ETH, SOL, etc.) suffer disproportionately due to higher beta
Market Data Snapshot – February 1–2, 2026
| Asset / Metric | Value / Change | Context |
|---|---|---|
| Ethereum (ETH) | –9.84% to ~$2,428.77 | Largest daily loss since Oct 2025; >50% below Aug 2025 ATH |
| Bitcoin (BTC) | Briefly <$80k, low ~$76,100 | ~6–7% daily drop; testing Nov 2025 lows |
| Solana (SOL) | –9.24% | High-beta altcoin most sensitive to risk-off |
| Total Futures Liquidations | $2.2 billion (24h) | Ethereum ~$961M (44%), BTC ~$679M (31%) |
| BTC Spot ETF Flows (recent week) | –$1.1B+ | Ongoing institutional rebalancing / de-risking |
| ETH Spot ETF Flows (Jan 28) | +$28.1M | Selective resilience earlier in week |
| Fear & Greed Index | ~20–25 (Extreme Fear) | Capitulation-level readings |
Technical Levels & Sentiment Context (ETH & BTC – Early Feb 2026)
Ethereum (current ~$2,480–$2,510 after bounce from $2,428.77)
- Immediate support: $2,400–$2,420
- Critical support: $2,300–$2,350
- Next major support: $2,150–$2,200 (200-week MA zone)
- Resistance: $2,600–$2,650
- RSI (daily): ~38–42 → oversold
Bitcoin (current ~$79,000–$80,500)
- Support: $77,000–$78,000
- Next major: $74,000–$76,000
- Resistance: $82,000–$85,000
How Traders Can Navigate This Environment on Tapbit
- Sign Up on Tapbit (0% maker fees)
- Deposit USDT or JPY via bank transfer / P2P
- Defensive posture: Hold USDT/USDC → earn yield via Tapbit Earn while waiting for reversal signals
- Selective dip accumulation: DCA ETH/USDT or BTC/USDT on exhaustion zones ($2,400 ETH / $77k–$78k BTC)
- Safe-haven hedge: Long XAU/USDT perpetuals if equity & crypto risk-off continues
- Risk control: Max 1–2% account risk per trade; isolated margin; trailing stops below recent lows
Conclusion & Near-Term Outlook
Vida’s ETH sell-off announcement — whether coincidental or prescient — crystallized growing fears that US equity weakness could spill over into crypto via shared liquidity channels, cross-margin deleveraging, and institutional rebalancing. The February 1–2, 2026 episode ($2.2B liquidations, BTC below $80k, ETH down 9.84% to $2,428.77) showed exactly how quickly these correlations can materialize during risk-off moves. While short-term pain is acute, capitulation signals (extreme fear, heavy liquidations, long-term holder accumulation) are also present.
Trade ETH, BTC & safe-haven assets on Tapbit:
Disclaimer: Cryptocurrency and equity trading involve significant risk of loss. Prices are highly volatile and can change rapidly. Geopolitical events, ETF flows and macro policy statements can cause sharp movements. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
