- 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
Governments Are Quietly Competing in the Bitcoin Mining Race
Governments are increasingly participating in Bitcoin mining, moving from regulation to direct involvement. This trend highlights economic benefits from utilizing surplus energy and strategic asset building. It signifies a shift towards viewing Bitcoin as infrastructure, enhancing security and stability in the network.
Coinfomania17m ago
Korean police lose 22 Bitcoins that have been seized and stored in cold wallets since 2021
The Gangnam Police Station in South Korea discovered 22 Bitcoins (worth approximately $1.5 million) transferred from a USB cold wallet. The Bitcoins were not detected during the investigation pause. The Northern Gyeonggi Provincial Police Department has launched an investigation to determine the cause of the fund outflow and whether there are any internal personnel involved. This incident is related to the loss of 320 Bitcoins by the Gwangju Prosecutor's Office.
TechubNews21m ago
South Korean police lose Bitcoin seized and stored in cold wallets since 2021
Seoul Gangnam Police Station in South Korea has discovered that 22 Bitcoins seized since November 2021 have been transferred out from a USB cold wallet, unnoticed due to a suspension of the investigation. The Northern Gyeonggi Provincial Police Department has launched an investigation to determine the cause of the fund loss and whether any internal personnel are involved. This discovery stems from a nationwide review of the Bitcoin loss incident at the Gwangju Prosecutor's Office.
GateNewsBot26m ago
Korean police evidence wallet out of control: 22 Bitcoins "disappeared," involving approximately $1.5 million, originating from a 2021 seizure
February 13 News, South Korea's law enforcement system has exposed further vulnerabilities in digital asset management. The Seoul Gangnam Police Station confirmed that in an investigation, Bitcoin seized and stored in November 2021 was recently found to have been transferred from a USB cold wallet. Internal checks revealed that the involved amount was 22 Bitcoins, estimated at approximately $1.5 million at current prices. The police have confirmed this to the media.
According to disclosures, the physical USB drive of the cold wallet was not lost, but on-chain assets were successfully transferred out. Due to the investigation being temporarily halted, this anomaly went unnoticed for a long time until a recent nationwide review of evidence and digital asset management uncovered it. After local media first reported the incident, it sparked public doubts about law enforcement agencies' digital asset custody mechanisms.
GateNewsBot27m ago
Gate Research Institute: BTR surges up to 63% in 24 hours | Standard Chartered downgrades long-term Bitcoin outlook
Cryptocurrency Asset Overview
BTC (+0.14% | Current Price: 65,495 USDT)
BTC has continued its weak sideways movement over the past 24 hours. After multiple failed rebounds, it accelerated downward, with the low retreating to around $65,230. It then slightly stabilized and recovered, currently trading within a narrow range of $65,400–$65,600. Overall, the rebound momentum is insufficient, and market sentiment remains cautious. Technically, the short-term moving averages are turning downward, with MA5 and MA10 crossing below and suppressing the price. MA30 is still in a downtrend, indicating a short-term weak pattern. The key support levels are at $65,200–$65,000; if broken, further testing of lower levels is possible. Resistance is at the $66,200–$66,500 range. Until this area is reclaimed, the trend is likely to remain weak and oscillate sideways.
ETH
GateResearch32m ago
