Arthur Hayes: Bitcoin to Drop to $70,000

BlockBeats News, February 25th, BitMEX co-founder Arthur Hayes posted on social media, stating that "many IBIT holders are hedge funds, which earn returns higher than short-term U.S. Treasury bonds by longing ETFs and shorting CME futures."

If the BTC price drop causes the basis (i.e., the difference between ETF price and futures price) to narrow, these funds will sell IBIT and cover CME futures.

These funds are currently profitable, considering the basis is close to the U.S. Treasury bond yield; they will liquidate positions during the U.S. trading hours to realize profits. I see a drop to $70,000."