Analysis: Bitcoin price stability faces potential "basis trading plunge" risk

According to CoinDesk, amidst the turbulence in U.S. stocks triggered by tariffs, Bitcoin has recently remained stable, exciting market participants about its potential as a hedge asset. However, there is no ruling out the possibility of a significant downturn in the short term, especially as "U.S. Treasury basis trading" faces risks due to increased bond price volatility.

Analysts believe that the potential outbreak of $1 trillion U.S. Treasury basis trades could trigger a global cash grab and possibly lead to all assets including Bitcoin being sold off. It is reported that a similar situation occurred in mid-March 2020 when the volume of basis trades reached $500 billion.