Arthur Hayes： Bitcoin may fall to $70000, hedge fund arbitrage may trigger selling pressure

According to Foresight News, Arthur Hayes, co-founder of BitMEX, posted on social media that Bitcoin may soon enter a downward trend. Hedge funds holding a large amount of iShares Bitcoin ETF (IBIT) long ETFs while short CME futures to earn returns higher than their cost of capital and short-term US bonds. Hayes pointed out that if the price of Bitcoin falls and the basis narrows, these funds may sell IBIT during US trading hours and replenish CME futures positions. These funds are currently in a profitable state, and considering that the basis is close to US bond yields, they will close their positions during US trading hours to achieve profits. It is expected that the price of Bitcoin may drop to $70000.