Core Viewpoint - Institutional dealer hedging is contributing to the downward pressure on Bitcoin prices, as highlighted by Arthur Hayes, co-founder of BitMEX [1][2]. Group 1: Impact of Structured Financial Products - Hayes pointed out that structured financial products linked to BlackRock's iShares Bitcoin Trust (IBIT) are causing financial institutions to sell Bitcoin to manage risk exposure due to falling prices [1][2]. - The process of delta hedging, where institutions adjust their positions to remain risk-neutral, is exacerbating the selling pressure in the crypto market [2][3]. Group 2: Feedback Loop in Crypto Market - The mechanism of delta hedging creates a feedback loop in the crypto sector, where initial selling leads to further selling, accelerating the price decline of Bitcoin [3]. - This dynamic is noted to be different from traditional equity markets, where such mechanisms are standard [3]. Group 3: Market Volatility and Context - Hayes plans to compile a list of all issued notes by banks to identify trigger points that could lead to rapid price fluctuations [4]. - The cryptocurrency market is experiencing significant turbulence, with Bitcoin recently facing its worst single-day performance since the FTX collapse in November 2022 [5]. - Broader macroeconomic factors and concerns regarding quantum computing security have also been cited as contributing to the market decline [5][6].