Globally, investor sentiment has shifted to extreme fear, leading to reduced risk appetite and capital rotation into safer assets such as precious metals, says Gracy Chen, CEO, Bitget
Amid ongoing volatility in the cryptocurrency markets, which has pushed Bitcoin more than 48 per cent below its peak, Gracy Chen, chief executive officer (CEO) of Bitget, said the sector is waiting for clearer macroeconomic catalysts before a sustained recovery can take shape.
In an email interaction with Kumar Gaurav, Chen noted that while selective opportunities may emerge in segments attracting sustained funding interest, broader caution prevails until macro visibility improves. Edited excerpts:
What factors are driving crypto markets now, and how is this affecting investor sentiment globally and in Asia?
The sharp drops in Bitcoin and Ethereum over the past six months have been primarily driven by macroeconomic pressures, including renewed US tariff hikes that have raised inflation concerns, orderly deleveraging of leveraged positions, risk-off rotations tied to tech stock weakness, and uncertainty around Federal Reserve policy.
Globally, investor sentiment has shifted to extreme fear (with sentiment indices near historic lows), leading to reduced risk appetite and capital rotation into safer assets such as precious metals.
In Asia, where trading volumes remain subdued, and many users prefer buying strength, sentiment is similarly cautious but supported by regional equity resilience in some markets, though crypto divergence has amplified hesitancy among retail participants.
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How is Bitget adapting its strategies and risk management to protect traders while sustaining growth?
At Bitget, we have adapted by prioritising enhanced risk controls, including stricter leverage limits during high-volatility periods, real-time position monitoring, and proactive margin adjustments to prevent cascading liquidations.
Our Protection Fund, recently valued at an average of around $588 million in January 2026 (peaking over $630 million), continues to provide an additional layer of security for users, underscoring our commitment to safeguarding traders without compromising platform growth through diversified product offerings and user education initiatives.
What strategies would you recommend — accumulation, diversification into altcoins, or a more cautious approach?
In the current environment, accumulation stands out as a strong strategy for building spot positions at these depressed levels, while using Bitget’s flexible earning products can help capture long-term upside with managed risk. Diversification into select altcoins can complement this, but should be approached selectively rather than broadly.
Which types of digital assets or sectors might offer opportunities for investors in the current market?
Altcoins often act as amplified volatility plays relative to Bitcoin, with performance typically following BTC trends in waves or rotational sequences.
Amid current conditions, relative opportunities may emerge in sectors with sustained funding interest, such as high-funding-rate perpetual contract targets that attract capital flows during recovery phases, or fundamentally strong narratives that show resilience, though overall caution remains warranted until clearer macro catalysts emerge.
As a diversity advocate in Web3, how do you see leadership, inclusivity, and innovation evolving during periods of high market volatility?
Periods of high volatility tend to expose structural weaknesses, but they also clarify what kind of leadership the industry actually needs. In strong bull cycles, growth can mask inefficiencies and narrow decision-making circles. In drawdowns, resilience becomes the differentiator. Leadership in Web3 today must be data-driven, transparent, and steady under pressure. It is no longer enough to focus purely on expansion metrics; platforms need to demonstrate risk discipline, responsible product design, and clear communication with users.
Inclusivity becomes even more important in these phases. When markets contract, there is a tendency for ecosystems to retreat into insular networks. That is precisely when diversity of thought and background adds the most value. Broader representation in leadership teams leads to more balanced risk assessment, more thoughtful capital allocation, and products that serve a wider demographic base rather than a narrow trading cohort. Through initiatives like Blockchain4Her, the objective has never been symbolic participation; it is about building a deeper talent pipeline so that women and underrepresented groups are actively shaping infrastructure, governance, and innovation in Web3.
From an innovation perspective, volatility speeds up evolution. Builders are compelled to prioritise real utility, security architecture, and sustainable token models over narrative-driven growth. Transparency, cross-asset interoperability, and alignment with compliance are already receiving greater attention. Tough markets, in many respects, build stronger foundations.
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