Augustine Fan, the head of SignalPlus, analyzed that the recent sell-off of Bitcoin was mainly triggered by multi-strategy hedge fund trading that dominates the macro market. These trades involve arbitrage, long and short positions, and leveraged operations, aimed at maximizing returns across asset classes. In the Bitcoin market, a common multi-strategy trading method is basis trading, which profits from the price difference by buying spot Bitcoin (usually through ETFs) and shorting Bitcoin futures. However, when the price difference narrows or the market changes, the profits from basis trading decrease, leading to capital exiting positions and a concentrated sell-off of Bitcoin and ETF shares. Fan pointed out that this liquidation pressure amplified the sell-off over the past week, particularly against the backdrop of increased volatility related to tariffs. Nevertheless, the sentiment of "buying the dip" still exists in the market. Fan stated that stock valuations outside of major blue-chip companies remain relatively stable compared to historical averages, and hard economic data may perform better than the rapid deterioration of soft data. Therefore, the market is generally considered to still be a "buying the dip" market, and it is expected to gradually digest the impact of tariff volatility.

PANews reported on March 17 that according to analysis by Augustine Fan, head of SignalPlus, the recent Bitcoin sell-off was mainly triggered by multi-strategy hedge fund transactions that dominate the macro market. These multi-strategy transactions include arbitrage, long and short positions, and leverage operations, aiming to maximize returns across asset classes.
 In the Bitcoin market, a common multi-strategy trading method is basis trading, which is to profit from the price difference by buying spot Bitcoin (usually through ETFs) and shorting Bitcoin futures. However, when the price difference narrows or the market changes, the profit of basis trading decreases, causing funds to exit positions and sell Bitcoin and ETF shares in a concentrated manner. Fan pointed out that this liquidation pressure has amplified the selling in the past week, especially against the backdrop of increased tariff-related volatility.
 Despite this, the "buy on dips" sentiment in the market still exists. Fan said that stock valuations outside the major large-cap stocks are still relatively stable compared to the historical average, and hard economic data may be better than the rapid deterioration of soft data. Therefore, the market generally believes that it is still a "buy on dips" market, and it is expected to gradually digest the impact of tariff fluctuations.

SignalPlus CEO: Multi-strategy hedge fund trading triggers Bitcoin sell-off, but the market still holds a buy-the-dip sentiment.