DFDV COO: Hong Kong Non-Crypto Hedge Funds May Have Triggered Market Decline Due to IBIT Leveraged Option Trading Blowouts

Odaily News Parker posted on platform X, stating that IBIT's trading volume reached $10.7 billion today, setting a new all-time high, approximately double the previous record. Additionally, today's IBIT option premium trading volume was about $900 million, also reaching a new historical high.

The recent decline may be attributed to one or more large holders of IBIT, speculated to be one or several non-crypto hedge funds based in Hong Kong. As these funds operate outside the crypto space, they have gone unnoticed by the crypto community. It is speculated that these funds may have used yen-borrowed capital to engage in leveraged option trading on IBIT. After incurring losses in other trades such as silver, the decline in BTC ultimately led to the liquidation of their leveraged positions.

Parker stated that there is currently no conclusive evidence, and his viewpoint is merely speculation based on partial clues.