- Caught off guard
- The Asian connection
According to a new report from analytics firm 10x Research, market speculation is mounting that a “multi-billion-dollar Hong Kong hedge fund” has broken down
This has exacerbated the selling pressure that saw Bitcoin plunge from $90,000 to $60,000 in under a month.
Caught off guard
Of course, the sheer speed of the recent drawdown has puzzled analysts, and many were desperate to find answers
HOT Stories
Ripple CEO Dubs New CFTC Committee ‘Olympics Crypto Roster’
Crypto Market Review: Shiba Inu (SHIB) Gains 5% as Volatility Rises, Ethereum (ETH) Tests Local Uptrend, Will Bitcoin Stabilize as Volume Hits $74 Billion?
“Bitcoin’s rapid decline from $90,000 to $60,000 in just two to three weeks caught many traders off guard, both in speed and magnitude,” 10x Research stated in their latest update.
The firm noted that trading volumes for BlackRock’s IBIT Bitcoin ETF exploded during the sell-off, which makes this crash rather peculiar
Based on “the sharp increase in ETF trading volume” during this period, it is likely that the move was caused by large-scale institutional flows, hedging activity, and the unwinding of structured positions."
At the peak of the volatility, daily trading volume for the ETF “exceeded $10 billion,” which was highly unusual
The Asian connection
As noted by the firm, nearly all of silver’s gains over recent months occurred during Asian sessions
This shows that regional positioning and balance sheet deployment have played an outsized role in recent market moves
It is this specific concentration of activity that has fueled the rumor mill regarding a distressed entity operating out of Hong Kong.
“In the absence of a clear structural framework, this has led to speculation that the potential distress or unwinding of a multi-billion-dollar Hong Kong hedge fund may be the primary cause of Bitcoin’s decline.”
However, 10x Research urged caution before pinning the entire market crash on a single entity.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Goldman Sachs Files for Bitcoin Premium Income ETF With Covered Call Strategy
Asset manager and financial giant Goldman Sachs filed a registration statement with the Securities and Exchange Commission (SEC) on Tuesday, for a new actively managed fund called the Goldman Sachs Bitcoin Premium Income ETF.
Key Takeaways:
Goldman Sachs filed for a Bitcoin Premium Income ETF on
Coinpedia26m ago
Three Newly Created Wallets Withdraw 1,600 BTC from Major Exchanges in 5 Hours
Gate News message, April 16 — According to Lookonchain, three newly created wallets withdrew 1,600 BTC, valued at approximately $120 million, from major centralized exchanges over the past 5 hours.
GateNews1h ago
Florida and Massachusetts jointly recover $5.4 million in cryptocurrency scam assets
The Florida State Attorney’s Office and the Marion County Sheriff’s Office jointly recovered $5.4 million in cryptocurrency scam funds, involving an investment fraud scheme that used romance as a cover. Some of the funds have been returned to victims in Florida and Massachusetts. Since its inception, CFEU has recovered $7.2 million, and another $12.6 million in assets remains frozen. Massachusetts has also carried out multiple law-enforcement actions, shutting down scam websites and recovering funds.
MarketWhisper3h ago
