Analysis: The sharp drop in BTC may be due to the forced liquidation of leveraged options held by hedge funds in IBIT; the scale is enormous and may be disclosed soon.

According to ME News, on February 6th (UTC+8), Parker White, Chief Investment Officer and Chief Operating Officer of DeFi Dev Corp, posted on social media that "BlackRock's IBIT trading volume reached $10.7 billion yesterday, almost double the previous highest day, with options premiums of approximately $900 million, both record highs. The simultaneous decline of BTC and SOL, coupled with low CeFi liquidations, suggests that this volatility originated from large IBIT holders, possibly one or more non-crypto hedge funds headquartered in Hong Kong. Data shows that some funds have extremely high IBIT holdings, even single-asset funds, aiming to isolate margin risk. Silver's sharp drop today and accelerated liquidation of yen carry trades exacerbated market pressure, further impacting fund leveraged positions. These funds may have attempted to recover through high-leverage options trading, but losses continued to mount, and ultimately, the decline in Bitcoin may have completely wiped out their positions. Due to the lag in 13F reporting disclosures, relevant holding information is expected to be available only in mid-May, but the scale of the event is so large that it cannot be hidden for long." (Source: ME)