Arthur Hayes allowed for a drop in Bitcoin to $70,000.
According to him, this could happen due to the sale of ETFs by hedge funds.
Arthur Hayes, the chief investment officer of the venture firm Maelstrom and co-founder of the BitMEX exchange, allowed for a drop in Bitcoin to $70,000 due to the sale of ETFs by hedge funds.
The expert explained that many IBIT holders are hedge funds that have opened long positions on ETFs and short positions on the Chicago Mercantile Exchange (CME). This allows them to profit from the difference between the asset price on the spot and futures markets.
According to him, if this difference decreases due to a drop in Bitcoin, the funds will sell IBIT and buy the asset on CME.
“The funds are in profit, and since the difference is close to the yield of US short-term Treasury bonds, they will close their positions during the American trading session,” added Hayes.
Recall that earlier Hayes predicted a correction of Bitcoin to $70,000 before rising to $250,000 in 2025. At that time, he stated that there would be a “mini financial crisis” and the process of money printing would resume between this period.
At the time of writing, the first cryptocurrency is trading near the mark of $89,000:
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