Arthur Hayes, co‑founder of BitMEX, has pointed to hedging tied to BlackRock’s iShares Bitcoin Trust (IBIT) as a major driver behind the recent Bitcoin sell‑off. Related Reading: Bitcoin Edges Past Gold In Appeal, JPMorgan Says According to Hayes, dealer hedging related to IBIT and similar structured products can force large, mechanical selling when markets move against those positions. Reports note that such moves can amplify a price drop already set off by other pressures. Heavy Hedges Can Trigger Sudden Selling Pressure: Hayes Hayes argues that banks and dealers who underwrite structured notes and ETF‑linked products often hedge their exposure in the spot and derivatives markets. Those hedges can be heavy and fast. When a large product faces outflows or redemption triggers, hedges are adjusted quickly. That can translate into sudden selling pressure that pushes prices down further, especially if liquidity is thin. $BTC dump probably due to dealer hedging off the back of $IBIT struct