TechFlow news — On February 25, Arthur Hayes, co-founder of BitMEX, posted on social media stating that Bitcoin may be entering a downward phase. A large number of hedge funds holding iShares Bitcoin ETF (IBIT) have taken long positions in the ETF while shorting CME futures, aiming to earn returns exceeding their funding costs and short-term U.S. Treasury yields.
Hayes pointed out that if a decline in Bitcoin’s price causes the basis to narrow, these funds may sell IBIT and cover their CME futures positions during U.S. trading hours. These funds are currently profitable, and given that the basis has approached U.S. Treasury yields, they are likely to unwind their positions to lock in profits during the U.S. trading session. Bitcoin’s price could potentially drop to $70,000.
