Cango Sells 4,451 BTC for $305M to Repay Loans, Sparking Miner Capitulation Fears

VADODARA, February 9, 2026 — NYSE-listed Bitcoin miner Cango executed a massive 4,451 BTC liquidation over the weekend. The sale generated $305 million in proceeds. According to the company's official statement, all funds went toward repaying BTC-collateralized loans. This latest crypto news highlights mounting pressure on mining operations amid Bitcoin's price decline.

Investigation: The $305 Million Liquidation Event

Cango (NYSE: CANG) confirmed the transaction in a regulatory filing. The miner sold its entire Bitcoin position. Proceeds directly serviced outstanding debt. Market structure suggests this was a forced liquidity grab. The sale occurred during weekend thin liquidity. This amplified downward price pressure.

Company executives cited strategic restructuring. Cango aims to transition into AI computing infrastructure. The Bitcoin sale funds this pivot. Consequently, the mining firm exits its core BTC treasury position entirely. This mirrors actions seen during previous bear market cycles.

Market Context & Historical Precedent

Historically, miner capitulation signals local bottoms. The 2022 cycle saw similar large-scale liquidations. Companies like Core Scientific and Compute North faced identical pressures. They sold BTC holdings to manage debt obligations. Bitcoin's price subsequently found support at macro lows.

In contrast, current conditions differ. The Federal Reserve maintains restrictive monetary policy. High interest rates increase borrowing costs for leveraged miners. According to data from the Federal Reserve's H.8 report, commercial bank lending to businesses remains tight. This squeezes miners' access to refinancing options.

, Bitcoin's hash rate faces downward pressure. Miner revenue declines as transaction fees normalize post-halving. The network's difficulty adjustment may provide temporary relief. However, sustained price weakness could trigger more forced selling.

Related Developments:

• Derivatives selling pressure intensifies ahead of key inflation data
• Analysis suggests Bitcoin faces a critical retest of the $60K support zone

Technical Architecture & Price Action

Bitcoin currently trades at $68,956. The 24-hour trend shows a -2.53% decline. Market structure broke below the 50-day exponential moving average. This creates a bearish Fair Value Gap (FVG) between $71,200 and $73,800.

Critical support resides at the Fibonacci 0.618 retracement level of $65,200. This level aligns with the 200-day simple moving average. A breakdown here would invalidate the current bullish market structure. Resistance forms at the previous order block near $72,500.

On-chain data from Glassnode indicates rising exchange inflows. The Miner Position Index (MPI) shows increased selling pressure. Miner reserves have declined by approximately 15,000 BTC over the past month. This confirms the capitulation narrative.

By The Numbers

Why It Matters

Miner selling directly impacts market liquidity. Large block sales create immediate supply overhangs. This exacerbates downward momentum during weak sentiment periods. Institutional investors monitor miner behavior closely. Capitulation events often precede accumulation phases.

The transition to AI infrastructure reflects broader industry trends. Companies seek diversified revenue streams beyond pure mining. However, forced liquidations damage balance sheets. They reduce future Bitcoin exposure during potential price recoveries.

Expert Commentary

"Miner capitulation typically marks cyclical lows. The scale of Cango's liquidation suggests debt pressures are mounting across the sector. Market participants should watch for follow-on selling from other leveraged miners. The $65,200 Fibonacci level becomes critical for maintaining structural integrity." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two primary scenarios emerge from current market structure.

• Bullish Invalidation Level: $72,500. A sustained break above this resistance would fill the bearish FVG. It would signal miner selling absorption and potential trend reversal.
• Bearish Invalidation Level: $65,200. A weekly close below this Fibonacci support confirms capitulation acceleration. It opens the path toward $60,000 retest levels.

The 12-month outlook remains cautiously optimistic. Historical cycles show miner capitulation precedes strong recoveries. However, macroeconomic headwinds persist. The Federal Reserve's policy trajectory will influence institutional capital flows. Bitcoin's long-term adoption thesis remains intact despite near-term volatility.