Analyst: BTC Major Drop Possibly Due to Holding IBIT Hedging Fund Leveraged Options Being Liquidated, Large Scale May Be Revealed Soon

BlockBeats News, February 6th, DeFi Dev Corp's Chief Investment Officer and Chief Operating Officer Parker White posted on social media, stating, "Yesterday, Belade IBIT's trading volume reached $10.7 billion, nearly twice the previous record high day. Option premiums reached around $900 million, both hitting historical records. BTC and SOL synchronized the downturn, coupled with lower CeFi liquidations, thus suspecting that this fluctuation originated from a large IBIT position holder, possibly one or more non-crypto hedge funds headquartered in Hong Kong, China."

Data shows that some funds have extremely high positions in IBIT, even as single-asset funds, aimed at isolating margin risks. Silver plummeted today, yen arbitrage trades accelerated closing positions, intensifying market pressure, further impacting fund leverage positions.

These funds may be attempting to turn the tide through high-leverage option trades, but losses continue to escalate, and the eventual decline of Bitcoin may completely wipe out their positions. Due to the lag in 13F report disclosures, related position information is expected to be available only by mid-May, but given the massive scale of the event, it is difficult to conceal in the long term."