Bitcoin's decline continues, and according to Arthur Hayes, it may reach $70,000, driven by actions of large hedge funds.
Bitcoin Decline Continues
In the last 24 hours, Bitcoin fell below $89,000, affecting altcoins as well. The trading price at the time of writing is $88,500.
Arthur Hayes' Opinion
BitMEX co-founder Arthur Hayes claimed that Bitcoin might fall to $70,000, attributing this to increased selling by large hedge funds.
Hedge Funds' Reaction
Many IBIT holders are hedge funds that earn by exploiting the gap between short-term U.S. Treasury bond yields and long positions on ETFs. When the price difference between ETFs and futures narrows, these funds may sell their ETFs and buy CME futures.
It seems likely that Bitcoin may remain in a downward trend in the near future, driven by the current strategies of hedge funds.
