Arthur Hayes Blames BlackRock’s IBIT Hedging for Bitcoin Crash as BTC Price Rebounds 7%

Arthur Hayes has claimed that BlackRock’s IBIT fund is the major reason behind the Bitcoin crash that plagued the crypto market. This comes as the BTC price recovers by 7% after falling by over 50% from its all-time high.

BlackRock’s IBIT Hedging To Be Blamed for Bitcoin Crash, Hayes Says

In a recent X post, the BitMex co-founder said the recent BTC sell-off was most likely caused by dealer hedging by BlackRock through its iShares Bitcoin Trust (IBIT) structured products.

$BTC dump probably due to dealer hedging off the back of $IBIT structured products. I will be compiling a complete list of all issued notes by the banks to better understand trigger points that could cause rapid price rises and falls. As the game changes, u must as well. pic.twitter.com/9DF8VE9XBL

— Arthur Hayes (@CryptoHayes) February 7, 2026

Hayes added that he is also putting together an overall list of bank-issued notes where he can determine trigger points that may cause prices to fluctuate quickly. He also said that as the nature of the markets changes, traders should also change strategies.

The new statements come as Bitcoin crashed as low as $60,000. This led to a massive outflow of capital from the crypto market. During the downturn, the market cap lost about $2 trillion in volume from a peak of about $4.38 trillion last October.

The BTC price has already fallen by 30% this year after hitting $60,000. However, the token reclaimed the $70,000 mark on Friday, jumping by more than 7%, according to TradingView.

Arthur Hayes analysis can also be backed by the fact that this Morgan Stanley note struck near the October 31 high at 105,000. This placed the 75% knock-in level at precisely $78, 700. When the coin pierced through this level, the dealers are forced sellers to hedge this risk,

As the Bitcoin crash worsened, the sentiment also spilled into other assets. For example, gold and silver have become more volatile owing to leveraged purchases. Silver alone has fallen as much as over 18% after its bull rally. The MSTR stock as well fell as the BTC price bearish sentiment grew.

Why is BTC Price Falling Despite Trump Crypto Push?

Some top experts have reversibly attributed the recent downturn to volatility in other markets. They added that the recent changes in prices of precious metals have also prompted a drastic fall in prices of Bitcoin. “Institutional demand has reversed materially,” said CryptoQuant in a report.

According to the report, US exchange-traded funds (ETFs), such as IBIT issued by BlackRock that had been accumulating BTC last year, are now selling out this year, causing the Bitcoin crash.

“This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing,” CryptoQuant analysts said.

The BTC price jumped when Trump returned to the White House last year, with many believing that he would be “crypto-friendly” with his regulatory policies. Furthermore, the US president has a personal interest since his family owns WLFI. However, despite the president’s own interest in crypto, the digital asset space has still suffered from market forces.