In-Depth Analysis: BTC Price Drop May Be Linked to IBIT Options Liquidations

Background Analysis

According to Parker White, Chief Investment Officer at DeFi Dev Corp, BlackRock's IBIT saw a record trading volume of $10.7 billion yesterday, with options premiums approaching $900 million.

Market Correlation

As BTC and SOL dropped in tandem, observers noted that low liquidation thresholds on centralized exchanges point to large IBIT holders, possibly non-crypto hedge funds based in Hong Kong.

Risk in Portfolio Structure

Data indicates some funds hold extremely high, even single-asset, positions in IBIT to isolate margin risk. This strategy can backfire under high market volatility.

External Pressure

The sharp drop in silver prices and accelerated unwinding of yen carry trades added pressure, further stressing leveraged positions in the market.

Looking Ahead

Due to delays in 13F filings, detailed position data won’t be available until mid-May. However, the scale of this event suggests it will have lasting market implications.