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Arthur Hayes Predicts Trump’s Inauguration Could Crash Crypto
Arthur Hayes, the co-founder of BitMEX, has made a bold prediction regarding the potential impact of Donald Trump’s presidential inauguration on the cryptocurrency market. According to Hayes’ latest blog post, “Trump Truth,” he expects a significant sell-off in crypto markets following the January 20, 2025, event.
Hayes warns that investors have become overly optimistic about Trump’s presidency and its potential impact on the crypto space. He emphasizes that policy changes will not occur overnight and that a realization of this delay could spark a sharp correction in cryptocurrency prices.
In his blog post, Hayes highlights the disparity between investor expectations and the timeline for actual policy changes. He notes that the market has become overly enthusiastic about Trump’s presidency, with many anticipating an immediate turnaround in fortunes.
Hayes stresses that significant crypto policies will likely take time to implement and that a “vicious sell-off” in crypto markets may occur once investors come to terms with this reality.
The co-founder of BitMEX also shared his investment fund Maelstrom’s strategy for navigating potential market turbulence. According to Hayes, Maelstrom plans to reduce its exposure before Trump’s inauguration, aiming to repurchase positions at lower prices during the first half of 2025.
It is worth noting that this prediction comes amid a period of increased optimism in the crypto space following Trump’s victory in November 2024. Bitcoin surged past $100,000 for the first time in early December, and analysts are projecting a strong start to the year.
However, Hayes cautions against getting caught up in the hype, urging caution as the market approaches the inauguration date. He advises investors to be prepared for potential volatility and not to get trapped into overvalued positions.
In conclusion, it is crucial that crypto investors are aware of this potential risk and adjust their portfolios accordingly.
Source: coinchapter.com
