Bitcoin Price Under Pressure: Hedge Funds Sell ETF Arbitrage, Potentially Dropping Prices

Hedge funds are exiting Bitcoin exchange-traded fund (ETF) arbitrage trades, which could drive down the cryptocurrency’s price and potentially reach $70,000. U.S. Bitcoin ETFs witnessed a significant outflow of $517 million in daily transactions, with BlackRock and Fidelity experiencing the largest withdrawals from their respective funds. This ETF unwinding is creating a potential downward cycle as selling pressure intensifies, potentially triggering further price drops.