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.

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.