Bitcoin to Drop to $70,000 as Hedge Funds Unwind Positions – Arthur Hayes

Bitcoin’s downward trend has intensified, dropping below $89,000, with altcoins also seeing significant losses.

BitMEX co-founder Arthur Hayes believes this decline could continue, predicting a fall to $70,000.

According to Hayes, hedge funds holding Bitcoin ETFs are driving the sell-off.

Many of these institutional investors take long positions in ETFs while shorting Bitcoin futures on the CME, aiming to secure higher returns compared to short-term U.S. Treasury bonds.

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However, if the gap between ETF prices and futures contracts narrows, these funds may start offloading their ETF holdings and repurchasing futures, increasing selling pressure.

Hayes warns that if this trend continues, Bitcoin could dip as low as $70,000, signaling a potential bear market ahead.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.