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Author: Admin | 2025-04-27
Bitcoin “goblin town” is incoming, says BitMEX co-founder Arthur Hayes. According to him, Bitcoin could fall to $70,000 if large hedge funds exit their positions in US Bitcoin exchange-traded funds. The leading crypto coin has slid below $90K.Arthur Hayes said that big hedge funds that are playing the ETF arbitrage game are starting to get out of their positions. This is putting more selling pressure on Bitcoin. He explained that a lot of the people who own IBIT are hedge funds that bought ETFs and sold CME futures to get a higher yield with less risk than short-term US Treasuries. #Bitcoin goblin town incoming:Lots of $IBIT holders are hedge funds that went long ETF short CME future to earn a yield greater than where they fund, short term US treasuries.If that basis drops as $BTC falls, then these funds will sell $IBIT and buy back CME futures. These… pic.twitter.com/3PskTxrBPR— Arthur Hayes (@CryptoHayes) February 24, 2025To that end, he posited that there could be large outflows from spot BTC ETFs such as the BlackRock iShares Bitcoin Trust (IBIT). He said, “If that basis drops as $BTC falls, then these funds will sell $IBIT and buy back CME futures.”The funds are currently in profit. Arthur said that given that the basis spread is close to Treasury yields, “they will unwind during US hours and realize their profit,” plunging BTC back to $70,000. When this happens on a large scale, the planned unwind causes many spot ETFs to be sold off, and futures prices go up. This pressure to sell makes Bitcoin’s price drop to present market lows. This could lead to a feedback loop where more funds rush to get out of their positions.US Bitcoin ETFs see their second-biggest outflows of the yearOn-chain data shows that $516.4 million left US spot-listed BTC ETFs on Monday. This was the second-biggest outflow of the year. The ninth net outflow in 10 days shows that people are becoming less confident in the biggest crypto coin, whose price has been stuck between $94,000 and $100,000 for most of the month.To be more exact, a lot of
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