🚨⚡ THE COLLAPSE OF BITCOIN: BANK HEDGING ON IBIT AT THE BASE? ⚡🚨

The recent collapse of Bitcoin, which caused the price to drop below $60,000 with a decline of 50% from all-time highs, seems linked to the hedging strategies of banks on structured products related to BlackRock's iShares Bitcoin Trust (IBIT).

These financial instruments, issued by institutions like Morgan Stanley, replicate bets on the price of Bitcoin through structured notes that incorporate protection mechanisms for investors.

Structured notes work like this: they offer returns of up to 28% if IBIT maintains or exceeds a threshold level (for example, 75% of the initial value, around $78,700 on a peak of $105,000).

When Bitcoin drops sharply, banks – acting as dealers – activate delta-hedging: they sell BTC on the spot market to maintain a neutral position, creating a domino effect that amplifies volatility.

This phenomenon, known as "inverse gamma squeeze," turns a moderate decline into a flash crash, eroding billions of market cap in just a few hours.

Monitoring these products is crucial: with over $100 million already sold by Morgan Stanley, hedging triggers can trigger rapid rebounds or further declines.

Outflows from ETFs like IBIT, which have recorded record sales, confirm a cautious institutional sentiment despite the rebound above $70,000.

The BTC market is now dominated by Wall Street: tracking bank notes and ETF flows becomes essential to anticipate the next swings.

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