Parker White: Hong Kong fund liquidation suspected to be the culprit of this sharp decline Traditional assets plummet, but Bitcoin becomes the first to be sacrificed for exit liquidity The synchronous sharp decline of Bitcoin and silver yesterday is highly likely due to the forced liquidation of the BlackRock ETF (IBIT) position in the US stock market by a large non crypto hedge fund in Hong Kong due to a macro liquidity crisis (yen liquidation+silver losses). Extremely abnormal data: The BlackRock Bitcoin ETF (IBIT) sold $10.7 billion in a single day, twice the usual amount, with option premiums reaching a record high of $900 million. At the same time, the clearing volume of on chain exchanges is at a low level, and SOL is rare to follow BTC in a simultaneous bearish trend, which means that the selling pressure is entirely derived from external US stock ETF channels. Parker White pointed the finger at large hedge funds in Hong Kong: position data shows that these funds often set up single asset accounts to hold IBIT in full, with the purpose of margin isolation. The trigger for this death spiral is the sudden depletion of macro liquidity: silver, which is heavily held by Asian funds, plummeted by 20% yesterday, coupled with accelerated liquidation of yen arbitrage trading, leading to a surge in funding costs and the breakdown of margin. These funds are suspected of using borrowed Japanese yen to heavily gamble on IBIT call options with high leverage. After attempting to increase their positions and recoup their losses, they were ultimately forced out of positions by securities firms at no cost. When traditional large funds were trading off silver and yen, the most liquid IBIT became their last straw and ATM. Bitcoin became the first to be sacrificed for exit liquidity. At present, it is only a speculation, and the actual hammer will be finally revealed in the institutional position report (13F) in mid May.