Crypto Market Faces Vicious Sell-Off as Trumps Inauguration Looms: Arthur Hayes Warns
Former BitMEX CEO Arthur Hayes warns that the crypto market could experience a significant sell-off following Donald Trumps inauguration on January 20, 2025. Hayes, who now manages the Maelstrom family office, argues that the gap between high investor expectations and the reality of Trumps political influence will lead to a sharp market correction. He anticipates a harrowing dump in cryptocurrency prices as the market adjusts to the reality of limited policy changes within Trumps first year in office.
Arthur Hayes Warns Crypto Market Faces Sharp Correction
Arthur Hayes suggests crypto investors have become overly optimistic about Trumps ability to implement major regulatory changes swiftly. He believes these expectations, driven by the former presidents pro-crypto stance, are unrealistic in the U.S. political landscape. Trump will face significant challenges in translating campaign promises into actual policy. Hayes predicts the market will realize that meaningful regulatory reforms may not materialize as quickly as hoped.
The former BitMEX CEO emphasizes that most legislators will begin campaigning for the 2026 midterm elections soon after Trumps inauguration, limiting his window for major policy actions. Hayes points out that even experienced politicians would need years to address the complex crypto market issues, making any substantial changes unlikely in Trumps first year. The markets disappointment, he argues, will likely trigger a sharp correction, particularly in the cryptocurrency space.
Hayes Foresees a Vicious Sell-Off Around Inauguration Day
According to Arthur Hayes, the crypto market could undergo a vicious sell-off shortly after Trump takes office. He notes that Bitcoins recent price surge, which saw it climb from $68,000 to a record $108,135 following Trumps election win, is unsustainable in light of the political realities. Hayes warns that the sell-off could extend beyond just crypto assets and spill over into other sectors linked to Trumps anticipated policies.
Maelstrom, Hayes investment firm, has already adjusted its portfolio in anticipation of this market shift. The company plans to reduce its crypto holdings before the inauguration, anticipating a correction once investor optimism wanes. However, Hayes acknowledges that his strategy could backfire if the bull market persists beyond January 2025, and he is prepared to adjust his approach if necessary.
Text source: TronWeekly
