Bitcoin plunged roughly $15,000 in a single day on June 5, 2024, sinking from about $31,000 to $16,000. Market analysts traced the tumble to aggressive positions taken by two unnamed Hong Kong hedge funds that leveraged the Yen carry trade to fund large bets on BlackRock's iShares Bitcoin Trust (IBIT) options.

The funds purchased out‑of‑the‑money call options on IBIT, expecting a rapid price rebound. When the Yen weakened and volatility spiked in the silver market, the bets turned sour, forcing the funds to liquidate their positions. The forced sales cascaded through futures and spot markets, amplifying the price drop.

Regulators noted that the U.S. SEC had recently lifted position limits on Bitcoin options, a change that may have encouraged the high‑leverage strategy. The Hong Kong Securities and Futures Commission has opened a probe into the trades, seeking to determine whether market manipulation occurred.

Fact: Bitcoin’s price fell from $31,200 to $16,300 on June 5, 2024, marking one of the steepest single‑day declines in its history.

The investigation by Hong Kong’s Securities and Futures Commission is ongoing.