Analyst Jiang Jinze pointed out that the reason Bitcoin remains strong amid the sharp decline in U.S. stocks may be due to hedge funds reducing leverage; hedge funds have been net short on BTC for a long time. During these typical margin call nights in the last two days, gold may be sold off to meet margin requirements. This has led to stagnant growth and heightened expectations of conflict while gold declines. Meanwhile, leveraged funds' positions on BTC are actually similar to those on gold, which are already profitable positions and can be prioritized for closure to reduce leverage.

Analyst Jiang Jinze pointed out that the reason Bitcoin remained resilient during the recent plunge in the U.S. stock market could be due to hedge funds reducing leverage. Hedge funds have been net short on BTC for a long time, and during these typical margin call nights over the past two days, gold may be sold to cover margin calls. This has led to a stagnation and an increase in conflict expectations while gold prices have fallen. Meanwhile, the positions of leveraged funds in BTC are actually similar to the already profitable positions in gold and are likely to be prioritized for closing to reduce leverage.

Analyst: Bitcoin's Strength May Be Due to Hedge Funds Prioritizing Deleveraging Over Shorting