The reason for the sharp decline has been identified: a major Hong Kong-based institution experienced a margin call. Yesterday, BlackRock's IBIT trading volume reached $10.7 billion, nearly double the previous record high day, with options premiums around $900 million, both hitting historical records.
$BTC and
$BTC declined simultaneously, coupled with lower CeFi liquidations, leading to suspicion that this volatility was triggered by large positions held by IBIT major holders, possibly one or more non-crypto hedge funds headquartered in Hong Kong. Data shows that some funds held extremely l