Arthur Hayes: Bitcoin Crash May Be Due to an Algo Trader's Unwinding of Their Bets on the BitMEX Perpetual Swap Product

BlockBeats News, February 7th, Arthur Hayes posted on social media, indicating that the initial judgment of BTC's sharp decline may be due to traders hedging operations on IBIT (BlackRock Bitcoin Spot ETF) structured products. He will subsequently compile a list of all relevant notes issued by major banks to more clearly identify key trigger points that may cause significant price fluctuations.

Previously, Parker White, Chief Investment Officer and Chief Operating Officer of DeFi Dev Corp, posted on social media, expressing suspicion that this fluctuation originated from a large IBIT holder, possibly a non-crypto hedge fund based in Hong Kong, China. Some funds have a very high position in IBIT, even as single-asset funds, with the aim of isolating margin risk. The sharp drop in silver prices, coupled with yen carry trades, accelerated liquidation, intensifying market pressure and further impacting fund leveraged positions. These funds may have attempted to turn the situation around through high-leverage option trading, but losses kept mounting, ultimately leading to a complete collapse of their positions, potentially causing Bitcoin's decline.