Arthur Hayes attributes Bitcoin’s collapse to ETF hedging by traders

Arthur Hayes, co-founder of BitMEX, suggested that institutional hedging by traders added to the recent downward pressure on Bitcoin prices.

In a February 7 post on X, Hayes referred to structured finance products linked to BlackRock’s iShares Bitcoin Trust (IBIT).

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Hayes knows the risks hidden in Bitcoin bond ETFs

argued that Bitcoin prices are falling It forces the financial institutions that issue these bonds to sell the underlying asset to manage their risk exposure. Financial professionals refer to this process as delta hedging.

Hayes explained that these regulatory documents are often issued by major banks to provide… Exposure to institutional clients on Bitcoin. Products include specific risk management features such as capital protection levels.

When market prices fall enough to trigger these predetermined levels, traders must adjust their positions widely to be risk neutral.

While this mechanism is considered standard in Traditional pursesHayes noted that it creates a feedback loop in the crypto sector where sales lead to more sales. This dynamic actually accelerates the collapse of the asset price.

“I am compiling a complete list of all banknotes issued to understand the trigger points that can cause rapid rises and falls in prices,” Hayes wrote.

However, Hayes made it clear that he did not believe there was a “secret plot” to destroy the market.

He emphasized that these derivatives do not intrinsically stimulate market movements, but rather increase fluctuations in upward and downward directions.

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$BTC the derivatives do not cause movements, they are amplified in both directions. There is no secret plot crash the crypto mrkt. Be thankful that there are no rescues so that you can quickly remove the exploited tourists and take them back alone!

– Arthur Hayes (@CryptoHayes) February 8, 2026

He added that the market should be grateful for the absence of bailouts, which allow the leverage to relax naturally.

These comments come amid a turbulent week for the cryptocurrency market. Bitcoin recently posted its worst one-day performance since The collapse of the FTX stock market In November 2022.

At the same time, other market participants attributed this decline to… Broader macroeconomic winds And also the security issues of quantum computing.

For context, He threw it Pantera Capital General Partner Franklin PS flips on a non-distressed currency entity rather than a typical industrial fund.

My guess was that the seller was probably a big player based in Asia. It is said that this entity avoided early detection by market watchers because it lacks deep relationships with crypto-native parties.

According to the PE theory, the entity was probably engaged in leveraged market-making strategies on Binance, financed by the Japanese yen trade.

These two analyzes confirm a radical change in the sector of digital assets.

It shows that complex trading strategies, not just individual emotions, They increasingly affect the movement of the price of Bitcoin.