Are There Undisclosed Hidden Reasons Behind the Sharp Decline?

Bitcoin (BTC) has been under heavy selling pressure in recent weeks, recording a decline of nearly 30% in just seven days. The price falling to the $60,000 level and then quickly recovering toward the $65,000 range has raised questions in the market about whether factors beyond ordinary macroeconomic reasons may be at play. Although the drop is largely explained by macroeconomic uncertainty, ETF outflows, and institutional selling, some investors believe there may be an undisclosed, “hidden” factor behind the move.

“There May Be Pressure Beyond Macro Factors”

Market participants argue that the recent Bitcoin decline cannot be explained solely by classic macroeconomic factors, suggesting that an unusual and intense wave of selling may have significantly accelerated price movements. The speed and depth of the drop, along with chain liquidations, are cited as key elements supporting this view.

One of the prominent voices expressing this view is well-known crypto investor Flood, who described the recent sell-off on X (formerly Twitter) as:

“One of the most brutal selling waves I’ve seen in years.”

According to Flood, this wave may have resulted from a single large player exiting the market or from a cascade of forced liquidations of leveraged positions. Such scenarios can amplify price moves dramatically, especially during periods of low liquidity.

Possible “Hidden” Scenarios Behind Bitcoin’s Drop

The main theories circulating in the market include:

• Large-Scale, State-Backed Bitcoin Sale: One theory suggests that a country such as Saudi Arabia, the UAE, Russia, or China may have sold over $10 billion worth of BTC. Alternatively, a major crypto platform on the brink of bankruptcy may have been forced to liquidate its reserves.
• Risk of Financial Collapse at a Major Crypto Exchange: Another scenario points to a large exchange holding tens of billions of dollars in Bitcoin facing balance-sheet stress. Forced selling in such a case could have triggered a sudden and sharp market drop.
• Forced Liquidations in BlackRock’s IBIT Options: A further claim relates to developments in BlackRock’s spot Bitcoin ETF, IBIT. Record activity—$10.7 billion in options volume and $900 million in option premiums—has led some analysts to suspect a large-scale forced options liquidation rather than routine deleveraging, potentially creating substantial spot market selling pressure.
• Sudden Sales by Hong Kong–Based Hedge Funds: The final theory suggests that some Hong Kong hedge funds borrowed in Japanese yen to take highly leveraged positions in IBIT options. Rising yen funding costs and consecutive losses in the silver market may have forced these funds to sell BTC holdings, accelerating sell-offs—especially during Asian trading hours.

Assessment

Bitcoin’s latest sharp decline appears too rapid and deep to be explained by macroeconomic pressures alone. While no official cause has been confirmed, the scenarios being discussed point to the possibility of large-scale, coordinated selling. Analysts emphasize the need to closely monitor on-chain data, exchange reserve movements, and ETF flows in the coming days. Even if these “hidden” reasons are not verified, such speculation continues to place additional psychological pressure on the market.

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