Bitcoin's price has dropped to a three-month low due to the unwinding of the cash and carry trade that had been suppressing its price. Hedge funds had been exploiting a low-risk arbitrage trade involving Bitcoin spot ETFs and CME futures, but with the trade collapsing, liquidity is being rapidly withdrawn from the market, intensifying the sell-off. The collapse of the cash and carry trade has led to over $1.9 billion in Bitcoin being sold in the past week. Analysts believe that the selling pressure will continue until all hedge fund positions are cleared, and volatility is expected to increase. Bitcoin's next target could be around $70,000, a key support level that may stabilize the market.



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