On Thursday, Bitcoin suddenly plummeted to around $60k, and I was curious about what really happened, so I looked into it. A nearly 30% drop in a week suggests it’s not just about macro factors or risk-off sentiment—traders on X are starting to point out that something more than that is at play.

Famous trader Flood mentioned that this sell-off felt "forced" and "indiscriminate." It was like the kind of selling pressure that could cause a sovereign nation or an exchange’s balance sheet to collapse. There are hypotheses that a secret sovereign entity might have dumped billions of dollars’ worth, or that an exchange holding a huge amount of Bitcoin was forced to sell for some reason.

There are also more detailed analyses. Franklin Bie of Pantera Capital suggests that this isn’t just a crypto-focused trading firm involved, but rather a major Asian-based non-crypto asset company. Because it’s not identifiable within the crypto community. His speculation is that this company was market-making with leverage at a major exchange, and that a carry trade denominated in JPY was unwound. The liquidity crisis on October 10, the failed recovery attempts in gold and silver markets afterward, and this week’s desperate unwind—these are all part of a chain reaction.

However, what this crash reveals isn’t just about leverage. It’s also about security. Charles Edwards of Capriole argues that this price drop could bring serious attention to Bitcoin’s quantum resistance risk. He’s been saying since last year that “the price needs to go lower,” and he views this movement as a “promising development” toward that goal. Still, he’s also concerned that it might be a false flag operation—an attempt to ignore quantum risks without implementing real measures.

There’s also analysis focusing on BlackRock’s spot Bitcoin ETF (IBIT). Perka White of DeFi Development Corp points out the unusual trading activity around IBIT. While option premiums hit a record high of $900 million, the trading volume reached a historic $10.7 billion. This suggests a large-scale liquidation driven by options. There’s a possibility that a Hong Kong-based hedge fund was engaging in leveraged options trading on IBIT in Japanese yen, suffered significant losses on October 10, and then failed to recover in gold and silver markets, ultimately being forced to sell Bitcoin. No concrete proof exists, but the scenario is quite convincing.

In any case, Bitcoin’s movement over the past week isn’t a gentle decline but a sudden vacuum. Sharp volatility amid low liquidity is prominent. Sentiment has collapsed to levels seen after the FTX incident, and traders are viewing each rebound with suspicion.

Another perspective comes from the IMF’s warning: by 2029, global public debt could reach about 100% of world GDP. In an environment where debt outpaces growth, investors will start seeking alternatives outside traditional finance. Considering Bitcoin’s supply cap, independence from sovereign balance sheets, and performance during banking crises, its appeal as a hedge against rising public debt and financial repression is increasing.