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Arthur Hayes Warns of Crypto Market Downturn
Arthur Hayes, co-founder of BitMEX and a macroeconomic strategist at Maelstrom, has issued a stark warning for crypto investors. He predicts significant turbulence in the crypto market around Donald Trump’s potential inauguration in January 2025.
Hayes views this anticipated downturn as a short-term correction within the broader crypto bull market cycle. His warning serves as a reminder of the intricate relationship between political events and market dynamics.
Maelstrom, his investment firm, is preparing to scale back its exposure during this volatile period, planning to strategically reacquire key holdings at discounted prices during the first half of the year. Hayes emphasizes that many traders attempt to time the market but often sell too early and lack confidence to reinvest at higher prices.
The crypto market correction will likely occur near Trump’s inauguration date of January 20, 2025, according to Hayes. He plans to position his portfolio for the next growth phase by recognizing this risk and being prepared to adapt swiftly if the market defies expectations.
Trump’s policies are expected to have a profound impact on the global financial system, ultimately bolstering Bitcoin (BTC) and other cryptocurrencies as long-term investments. However, Hayes cautions that crypto investors may overestimate the speed at which Trump can enact transformative changes.
He predicts the crypto market will soon recognize the limitations of Trump’s influence, particularly during his first year in office, resulting in a sharp sell-off in cryptocurrencies and related equity trades.
Hayes believes Trump’s policies will expose structural weaknesses in the global financial system. He is convinced that Bitcoin and other cryptocurrencies will benefit from these issues as investors seek long-term security.
To navigate the anticipated volatility, Maelstrom is implementing a dual strategy of reducing exposure during the downturn while maintaining readiness to reenter positions once the crypto market stabilizes.
Source: cryptocurrencynews.com
