According to the co-founder of the crypto exchange BitMEX Arthur Hayes, flagship kriptovalyuta could fall to $70,000, especially if large investors close their positions in BTC spot funds.
He suggested that there could soon be a significant outflow of funds from iShares Bitcoin Trust (IBIT) from BlackRock. Many of its holders are hedge funds that have invested in ETF, while simultaneously selling CME futures to get low-risk returns above those on short-term U.S. Treasuries, he explained.
However, if that yield, called the «basis spread,» falls along with the price of bitcoin, then these funds will sell IBIT and buy back CME futures, he said.
This could lead to Bitcoin falling to $70,000.
That most of the demand for bitcoin ETF falls on hedge funds, said 10x Research CEO Marcus Thielen. He also said that these financial institutions are “playing arbitrage and are not long-term holders.” Accordingly, if the price of bitcoin falls, the futures premium could also shrink, which would create a problem for hedge funds. They would begin to unwind their trades, selling shares. bitcoin ETF and buying up short CME futures, the expert is sure.
At the time of writing, the flagship kriptovalyuta corrected to $87,90. Over the past XNUMX hours Bitcoin fell in price by 7,8%.