Bitcoin’s price will continue to experience volatility until genuine buyers start entering the market, rather than traders seeking arbitrage opportunities, according to a crypto venture capitalist.
“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,” Master Ventures founder Kyle Chasse said in a Feb. 27 X post.
Hedge funds were pursuing “low-risk yields” on Bitcoin
“For months, hedge funds were exploiting a low-risk yield trade using BTC spot ETFs & CME futures,” Chasse added.
He said that volatility will continue for Bitcoin (BTC) as leveraged positions get liquidated and the cash and carry trade will “keep unwinding.” “BTC needs to find real organic buyers (not just hedge funds extracting yield),” he said.
Chasse explained that hedge funds were making profits trading the difference between Bitcoin futures price…
