Arthur Hayes caused the fall of bitcoin to $70,000 due to ETF sales by hedge funds.
He explained that hedge funds owning IBIT use an arbitrage strategy: opening long and short positions on CME, earning on the price difference between the spot and futures markets.
If bitcoin falls and this difference narrows, they will sell IBIT and buy back the asset on CME.
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#Crypto Market Pullback
Arthur Hayes caused the fall of bitcoin to $70,000 due to ETF sales by hedge funds.
He explained that hedge funds owning IBIT use an arbitrage strategy: opening long and short positions on CME, earning on the price difference between the spot and futures markets.
If bitcoin falls and this difference narrows, they will sell IBIT and buy back the asset on CME.