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Arthur Hayes, former CEO of BitMEX and a prominent figure in the cryptocurrency space, has made a bold prediction regarding Donald Trump’s upcoming inauguration as President of the United States. According to Hayes, the 64 days leading up to Trump’s inauguration on January 20, 2025, could trigger a sharp drop in cryptocurrency values.
Hayes’ warning stems from his analysis that there is a significant gap between investors’ expectations and the new administration’s ability to rapidly implement policies benefiting the industry. Since Trump’s electoral victory in November, the crypto market has experienced remarkable growth, with Bitcoin reaching an all-time high of $108,260.
This surge is largely attributed to optimism surrounding the possibility of pro-crypto measures being introduced by the new administration, including the potential for a national strategic reserve of Bitcoin, as previously suggested by Trump. However, Hayes believes that these heightened expectations might prove unsustainable in the short term.
To support his argument, Hayes highlights the limited timeframe available for implementing major reforms. He points out that any significant policy changes would need to occur before the end of 2025, as the U.S. Congress, particularly the House of Representatives, will shift its focus towards the midterm elections in 2026. Furthermore, he suggests that many structural challenges facing the crypto sector and broader economy would require more than a decade to resolve, even under an administration dedicated to such goals.
Given this outlook, Maelstrom has chosen to reduce its exposure to certain cryptocurrencies ahead of Trump’s inauguration, anticipating a potential sharp correction in the market. However, Hayes acknowledges that this strategy is not entirely risk-free, as the market could continue to advance even after the inauguration. In such an event, the firm would be prepared to adjust its position and re-enter the crypto market to capitalize on the ongoing bull cycle.
It remains to be seen whether Hayes’ prediction will come true or if his warning serves as a cautionary tale for investors in the crypto space.
Source: crypto-economy.com
