This is the most widely recognized analysis post about BTC plummeting to $60k, with the main points being:

Hong Kong hedge funds, originally not traditional financial players specializing in crypto, borrowed ultra-cheap Japanese yen and used high leverage to buy call options on the $iShares Bitcoin Trust ETF(IBIT.US) — those cheap, far-out-of-the-money "lottery tickets" betting on a massive Bitcoin rally, with very high leverage.

They bet on a rebound after the big drop last October, but the rebound never came; Bitcoin kept falling. At the same time, the cost of borrowing yen increased (the carry trade started to unravel), and they might have also been heavily invested in silver/gold (silver plunged over 20% in a single day). Multiple positions all blew up.

Brokers issued margin calls, which they couldn't meet, forcing them to frantically sell IBIT shares and options to close positions.

As a result, that day, IBIT's trading volume exploded to $10.7 billion (a historical record, almost doubling), and options also hit a new high of $90 million.

These sell orders directly hit the Bitcoin spot market, triggering a chain reaction of panic, causing BTC to flash crash from over 70k to around 60k.

$Strategy(MSTR.US)

$Coinbase(COIN.US)