Crypto veteran Arthur Hayes thinks Bitcoin’s (BTC) short-term price outlook will be decided by US politics.
The BitMEX founder says on the social media platform X that it’s currently time to “chill out, retrace and wait.”
“If Trump can’t pass his budget which spends more and hikes debt ceiling, resume capitulation to levels pre the election day victory: $75,000 to $70,000. This is test of how strong Trump’s hold is on the Republican party.”
Hayes also suggests that a lot of the hedge funds that bought BlackRock’s iShares (IBIT) spot Bitcoin exchange-traded fund (ETF) could sell soon if BTC’s price keeps dropping.
“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 funds are in profit, and given basis is close to UST yields they will unwind during US hours and realize their profit. $70,000 I see you mofo!”
BTC is trading at $84,498 at time of writing. The top-ranked crypto asset by market cap is down more than 4% in the past 24 hours.
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