Arthur Hayes: Bitcoin is expected to fall to 70,000 US dollars
On February 25th, Arthur Hayes posted on social media stating that many IBIT holders are hedge funds. They earn returns higher than short-term U.S. Treasury bonds by going long on ETFs and shorting CME futures. If a drop in BTC price causes the basis (i.e., the difference between ETF prices and futures prices) to shrink, these funds will sell off their IBIT and cover their CME futures. These funds are currently profitable, considering that the basis is close to the yield of U.S. Treasury bonds, they will square positions during U.S trading hours to cash in profits. I predict a fall to $70,000.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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