Arthur Hayes Warns of Bitcoin Slump as ETF Outflows Intensify

- Bitcoin price at $88,681, down approximately 3.15% from the previous day - Large capital outflow from Bitcoin spot ETFs, potential for Bitcoin price decline [Unblock Media] The Bitcoin market has recently been experiencing a sharp decline. Currently, the price of Bitcoin is $88,681, which is down by approximately 3.15% from the previous day. The main causes of this decline are pointed out to be the increased outflow of funds from Bitcoin spot Exchange-Traded Funds (ETFs) and uncertainties in U.S. economic policies. Arthur Hayes, co-founder of the cryptocurrency exchange BitMEX, recently warned that if there is a large outflow of funds from the U.S. Bitcoin spot ETF, the price of Bitcoin could drop to $70,000. Hayes explained that many ETF investors, particularly hedge funds, are using a strategy of buying Bitcoin spot ETFs while simultaneously short-selling CME Bitcoin futures. However, if the price of Bitcoin drops, the returns from this strategy decrease, prompting hedge funds to sell ETFs and repurchase futures to change their positions. This could lead to a large wave of liquidations, causing the price of Bitcoin to plummet. Indeed, as of February 24, a total of $516.4 million has been withdrawn from the 11 Bitcoin spot ETFs listed on the U.S. stock market, marking the largest daily net outflow since January 8 of the previous month. Notably, BlackRock's iShares Bitcoin Trust saw an outflow of $159 million, exacerbating market concerns. tariff policy shook the SPX and Nasdaq, and it also had a direct impact on Bitcoin and altcoins," Master of Crypto analyzed on X (formerly Twitter). "Over the past 24 hours, nearly $800 million has been wiped out from the Bitcoin and altcoin markets. The macroeconomic environment is likely to exert additional downward pressure on Bitcoin." U.S. President Donald Trump's economic policies, such as imposing tariffs, are also impacting the Bitcoin market. President Trump has recently confirmed tariffs on Mexico and Canada, heightening inflation concerns. Investors are paying close attention to inflation data, as high inflation could limit the Federal Reserve's ability to cut interest rates, which could negatively affect high-risk assets like cryptocurrencies and stocks. Experts are warning of the possibility of further Bitcoin price declines. Jeff Kendrick, head of digital asset research at Standard Chartered, analyzed that Bitcoin could fall to the lower $80,000 range, and if the $90,000 support level breaks, the price decline could deepen across the digital asset market.