Arthur Hayes, co-founder of Bitmex, a cryptocurrency exchange, has predicted that crypto markets will experience a “harrowing dump” around President Trump’s inauguration day. Nonetheless, Hayes expects prices to pick up steam again before the second half of 2025.
Crypto Prophet Arthur Hayes Predicts Crypto Market Dump on Inauguration Day
The recent growth of the crypto market might be erased by inauguration day in a sort of “sell-the-news” event. This is the opinion of Arthur Hayes, co-founder of Bitmex and cryptocurrency market analyst, who believes that the window of opportunity for Trump to act is very narrow, given the impatience of the American people to appreciate the results of Trump’s policies.
In its most recent opinion piece “Trump Truth,” Hayes explains that Trump will resort to devaluing the U.S. dollar against gold to make the U.S. more attractive for companies, aiming to bring production onshore. This means the dollar money supply will accelerate, prompting bitcoin to new highs in the long run.
Hayes is also pessimistic about the opportunity for a strategic bitcoin reserve finally being greenlighted in America after this predicted devaluation. “I think politicians would rather spend the newly created dollars on goodies for the population to ensure their victory in the next soon-to-be-held election,” he stressed.
This is because lawmakers’ attention will be directed to their campaign duties by 2026, focusing on winning the midterm elections. According to Hayes, this gives Trump a limited time to apply the measures directed to mitigate the current problems of the U.S. economy.
He stated:
However, fixing the underlying domestic and international issues that negatively affect them would take even the most astute and powerful politicians over a decade, not just one year.
This will lead to what Hayes describes as “buyers’ remorse,” prompting a “vicious sell-off in crypto and other Trump 2.0 equity trades.” Hayes has skin in the game and stated that Maelstrom will reduce its crypto exposure, hoping to repurchase the same assets at lower prices sometime during the first half of 2025.