It is worse than that. It is due to Grayscale mass liquidations, which few people apparently saw coming. The unlocking of liquidity backfired on longs due to liquidation of GBTC. This is another example of how speculators and investors tend to get blindsided. You think you understand the risks but you don't. You understand the risks you know, not the unknown ones that only manifest when too late.

The concern now is grayscale will keep dumping , so people are selling into this fear, creating additional selling on top of the Grayscale selling in anticipation of more Grayscale selling.