Analyst: The sharp drop in BTC may be due to leveraged options held by hedge funds in IBIT being liquidated; the large scale may be disclosed soon.

BlockBeats News, February 6, Parker White, Chief Investment Officer and Chief Operating Officer of DeFi Dev Corp, stated on social media, "Yesterday, BlackRock's IBIT trading volume reached $10.7 billion, nearly double the previous highest daily volume, with option premiums around $900 million, both setting historical records. BTC and SOL fell simultaneously, and CeFi liquidations were relatively low, so I suspect this volatility originated from large IBIT holders, 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, aiming to isolate margin risk. Silver plummeted today, yen carry trades accelerated their unwinding, intensifying market pressure and further impacting fund leveraged positions.

These funds may have tried to turn the tide through high-leverage options trading, but losses kept expanding, and ultimately bitcoin's decline could completely wipe out their positions. Due to the lag in 13F report disclosures, related position information is expected to be available only in mid-May, but the scale of the event is so large that it will be difficult to hide for long."