Inside Consensus Hong Kong 2026 This series covers the key debates and trends that emerged from Consensus Hong Kong 2026, drawing on main stage sessions, side events, and on-the-ground interviews during the second week of February. The RWA War: Stablecoins, Speed, and Control Crypto’s AI Pivot: Hype, Infrastructure, and a Two-Year Countdown Crypto’s TradFi Moment: Institutions Are In, but on Their Terms The numbers keep getting cited at crypto conferences, but at Consensus Hong Kong 2026, they ca ...

In cryptocurrency investing circles, it's fashionable to talk about buying the dip. Unfortunately, the "dip" has now turned into a full-blown rout in 2026. Top cryptocurrencies, including both Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), are down anywhere from 20% to 35% for the year, and market sentiment has taken a nosedive. However, even amid crypto market chaos, there are some intriguing investment opportunities. Two cryptocurrencies that are on my shopping list for February are Hyperliquid (CRY ...

Core Insights - A new generation of AI-powered crypto trading bots is emerging, promising to disrupt the market by analyzing data at high speed and making independent trading decisions [1][4] - The performance of these AI trading bots is being tested across various platforms, with some models showing potential for delivering returns [2] Group 1: AI Trading Bots Overview - AI crypto trading bots are automated systems that interpret market data and execute trades without human intervention, utilizing large language models (LLMs) for real-time analysis [3] - Unlike traditional trading bots that rely on fixed rules, the new generation can adapt to complex numerical inputs and dynamic market changes [3] Group 2: Performance Experiment - The Alpha Arena experiment involved six leading LLMs, each given $10,000 in real crypto capital to trade autonomously, demonstrating that AI trading bots can generate real profits [5] - The competition concluded on November 3, with varying performance results among the bots, highlighting significant behavioral differences [9] Group 3: Results of the Alpha Arena Competition - Qwen3-Max emerged as the top performer, ending with approximately $12,287 in account equity, while DeepSeek V3.1 finished second with about $10,476 [8] - Claude Sonnet 4.5 and Grok 4 had modest gains or narrow losses, while Gemini 2.5 Pro and GPT-5 experienced steep drawdowns, closing at $5,226 and $3,734 respectively [9]

Core Insights - Auto-deleveraging (ADL) serves as a mechanism in crypto perpetual futures to manage risk during extreme market conditions, cutting part of winning positions when liquidations exceed market capacity [1][4] - Perpetual futures are cash-settled contracts that rely on funding payments rather than physical delivery, necessitating quick reallocation of exposure to maintain balance during stress [2] - During market turmoil, vaults can be profitable by purchasing distressed assets at deep discounts, as evidenced by a $40 million booking during a recent crypto meltdown [3] Mechanism of Auto-Deleveraging - ADL is the final step in a risk management process, activated when traditional liquidation methods fail to stabilize the market [4] - The process is likened to an overbooked flight, where profitable positions are reduced to ensure market solvency [4] - A card room analogy illustrates that trimming winning positions is essential for maintaining the overall game when liquidity is constrained [5] Queue and Reduction Process - When ADL is triggered, exchanges prioritize which positions to reduce based on unrealized profit, effective leverage, and position size, often affecting large, profitable accounts first [6] - Reductions occur at preset prices linked to the bankrupt side and continue until the market deficit is resolved, after which normal trading resumes [7] - Traders express frustration with ADL as it can impact correct positions during peak market momentum [7]