Affected by the recent downturn in the US stock market, the price of Bitcoin has once again fallen back to the key support level, and the market's confidence in Bitcoin seems to be less abundant than in previous times.

At the same time, Arthur Hayes, the founder of BitMEX, wrote today that many holders of BlackRock Bitcoin spot ETFs (IBITs) are actually hedge funds. Their strategy is to long ETFs and short CME futures to obtain arbitrage profits higher than short-term U.S. treasury bond bonds.

However, once this arbitrage basis narrows as BTC falls, these hedge funds will sell IBIT to replenish CME futures short positions.

At present, these funds have made profits, and since the basis is close to the yield of US treasury bond bonds, they are likely to close their positions in the US stock trading period and lock in profits.

Subsequently, Arthur Hayes hinted that Bitcoin may continue to decline all the way to $70000.