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.
As Bitcoin continues to consolidate above $100K, a critical market signal is flashing: BTC funding rates remain elevated, even as price action cools.
Billionaire investor Ray Dalio, founder of Bridgewater Associates, has suggested that a balanced investment portfolio should include up to 15% allocation to gold or Bitcoin, though he remains personally more inclined toward the traditional asset.
With Bitcoin hovering near $119,000, traders are weighing their next move carefully. The question dominating the market now is simple: Buy the dip or wait for a cleaner setup?
Bitcoin has officially reached the $116,000 milestone, a level previously forecasted by crypto services firm Matrixport using its proprietary seasonal modeling.