Arthur Hayes speaks up, BTC suddenly drops not just because of retail panic!! Arthur Hayes says there is a big role from banks that are hedging structured products based on Bitcoin ETFs, especially IBIT from BlackRock.
So the story goes, when the BTC price moves rapidly, banks have to adjust their positions to protect their risks. As a result, they also buy/sell in large quantities and make the market more volatile, and this is why sometimes BTC dumps suddenly; it may look extremely volatile, but there are large machines operating behind the scenes.
So the lesson is clear... now the crypto market has more institutional players, and price movements are not always about fear or FUD, let alone just Trump’s chatter. Sometimes this is purely a systemic effect from modern financial products that have a huge impact on the spot market.
Do you think this is just short-term noise or a sign that BTC volatility will become more brutal? Write your opinion in the comments section. Save & share with your friends so they don't wrongly blame panic selling all the time.