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.
His prediction is rooted in growing instability across traditional financial systems and what he believes is the emergence of the most powerful bull market in history.
Japanese investment firm Metaplanet has officially joined the ranks of the world’s largest corporate Bitcoin holders, announcing Thursday the purchase of 145 BTC — pushing its total stash to 5,000 BTC, currently valued at around $460 million.
As global sanctions continue to isolate Russia from traditional financial networks, the country’s top financial bodies — the Central Bank and the Ministry of Finance — are preparing to launch a government-backed cryptocurrency exchange.
Veteran Bloomberg Intelligence strategist Mike McGlone has reiterated his bearish stance on Bitcoin, adding Dogecoin (DOGE) to the list of assets showing signs of weakness.