Particle.news
Download on the App Store

Bitcoin Selloff Puts IBIT-Linked Dealer Hedging in the Spotlight

Attention shifts to the $64,000 pivot with Arthur Hayes cataloging bank-issued notes to identify trigger levels.

Overview

  • BitMEX co-founder Arthur Hayes argues banks hedging structured notes tied to BlackRock’s IBIT mechanically sold into the drop through delta-hedging rules.
  • He says automated dealer systems execute sales at preset thresholds, creating feedback loops that can amplify downward moves.
  • Hayes plans to compile and share a list of issued notes to map potential trigger points for rapid price swings.
  • Other market voices point to macro headwinds, quantum security concerns, or a distressed non-crypto entity cited by Pantera’s Franklin Bi as alternative drivers.
  • Traders are watching the $64,000 level highlighted by Bloomberg Intelligence’s Mike McGlone after a slide toward $60,000 that marked Bitcoin’s worst day since the FTX collapse.