Bitcoin’s 40% Drop Sparks Asia-Led Sell-Off Theory

[chainsniff]

Bitcoin just suffered one of its sharpest sell-offs of the past month, plunging more than 40% to a year-to-date low near $59,930 and falling over 50% from its October 2025 peak around $126,200.

One leading theory points to Hong Kong hedge funds as a key source of selling pressure. According to market participants, some funds placed heavily leveraged bullish bets using options tied to US spot Bitcoin ETFs like BlackRock’s IBIT. These trades were reportedly funded by borrowing cheap Japanese yen.

When Bitcoin stalled and yen borrowing costs rose, margin calls followed. Forced liquidations accelerated selling, turning a pullback into a cascade. The record-breaking trading volume in IBIT on the same day adds weight to the idea that ETF-linked positioning amplified the crash.

[lingriiddd]

this feels less like “btc is dead” and more like leverage finally snapping somewhere big