BitMEX co-founder predicts Bitcoin will reach $70K

Arthur Hayes, co-founder of the crypto exchange BitMEX, predicts a downturn for Bitcoin (BTC), forecasting that its price will drop to $70,000. In a recent post on X, he discussed the investment behavior of many hedge funds concerning BlackRock's spot BTC ETF, known as IBIT. According to Hayes, these funds have been buying into the IBIT ETF while shorting BTC futures on the Chicago Mercantile Exchange (CME). This strategy aims to yield higher returns than those from investing in short-term U.S. Treasury bills. Hayes explains that a fall in BTC's price would lessen the profit margin between the ETF and the futures prices. Consequently, hedge funds might sell off their IBIT shares and repurchase the now cheaper CME futures during U.S. trading hours to lock in their profits. Based on this scenario, he believes that BTC's price will reach $70,000.