Head of SignalPlus: The intensification of multi-strategy hedge fund trading has triggered the recent BTC sell-off, and the market is still in dip buying sentiment

PANews reported on March 17 that according to the analysis of Augustine Fan, head of SignalPlus, the recent sell-off in Bitcoin is mainly triggered by multi-strategy hedge fund transactions that dominate the macro market. These multi-strategy trades include arbitrage, long and short positions, and leveraged operations designed to maximize returns across asset classes. In the Bitcoin market, a common multi-strategy trading method is basis trading, which is to take advantage of the spread by buying spot bitcoin (usually through ETFs) and shorting bitcoin futures. However, when the spread narrows or the market changes, the profits of basis trading decrease, causing funds to exit positions and concentrate on selling Bitcoin and ETF shares. Fan noted that this liquidation pressure has amplified the sell-off over the past week, especially against the backdrop of increased tariff-related volatility. Still, the "buy the dip" sentiment in the market remains. Valuations of stocks other than major large-cap stocks remain relatively stable from historical averages, and hard economic data is likely to outperform the rapid deterioration of soft data, Fan said. Therefore, the market generally believes that it is still a "buy the dip" market, and it is expected to gradually absorb the impact of tariff fluctuations.