Arthur Hayes: Bitcoin could fall to $70,000, hedge fund arbitrage could trigger selling pressure

Foresight News reported that BitMEX co-founder Arthur Hayes posted on social media that Bitcoin may soon enter a downward trend. Hedge funds holding large amounts of the iShares Bitcoin ETF (IBIT) are going long on the ETF while shorting CME futures to earn returns higher than their cost of capital and short-term US Treasuries. Hayes pointed out that if the Bitcoin price falls and the basis narrows, these funds may sell IBIT during US trading hours and cover their CME futures positions. These funds are currently profitable, and considering that the basis is approaching the US Treasury yield, they will close their positions during US trading hours to realize their profits. Bitcoin prices are expected to fall to $70,000.