Ah, the enigmatic world of Bitcoin! It’s like a rollercoaster ride, isn’t it? But worry not, dear reader, for our dear friend Kyle Chasse, the founder of Master Ventures, has some insights to share. According to him, Bitcoin’s price will continue to experience volatility until genuine buyers start entering the market, rather than traders seeking arbitrage opportunities.
In a recent X post, Chasse explained that this is a classic case of liquidity games. ETFs didn’t just bring in long-term holders — they brought in hedge funds running short-term arbitrage. For months, these hedge funds were exploiting a low-risk yield trade using BTC spot ETFs and CME futures.
But alas, as the market tumbled, that price difference “collapsed,” making the trade unprofitable. This is commonly known as the cash and carry trade. Chasse said, “Hedge funds don’t care about Bitcoin.”
Now, as the market continues to tumble, Bitcoin needs to find real organic buyers (not just hedge funds extracting yield). But don’t fret, dear reader, for our dear friend Pav Hundal, the lead analyst at Swyftx, believes that most of the shakeout has already played out.
Bitcoin’s price has dropped below $80,000 for the first time since Nov. 10, breaking through that level following Donald Trump’s reelection in the US presidential election. At the time of publication, Bitcoin was trading at $79,532, as per TradingView data.
Swyftx lead analyst Pav Hundal told CryptoMoon that while Bitcoin could see more downside, most of the shakeout has already played out. “It is entirely likely that we see Bitcoin test lower at this point, but it is likely that most of the damage has been done,” Hundal said. He added that the upcoming US inflation data on Feb. 28 could improve market conditions if it comes in lower than expected.
So, there you have it, dear reader! The wild ride of Bitcoin continues, and we can only wait and see what the future holds. Until then, let’s all sit back, relax, and enjoy the show! 🎢
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2025-02-28 10:16