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Arthur Hayes Predicts Trump’s Inauguation Could Crash Crypto
Arthur Hayes, the co-founder of BitMEX, has made a bold prediction about the potential impact of Donald Trump’s inauguration on the cryptocurrency market. According to Hayes, the disparity between investor expectations and the timeline for actual policy changes could lead to a significant sell-off in crypto markets.
In his latest blog post, titled “Trump Truth,” Hayes emphasized that Trump’s presidency is not expected to bring immediate economic or political miracles. As such, he warned investors of a likely correction in cryptocurrency prices when the market realizes the slower pace of change.
Hayes believes that this mismatch between expectations and reality will cause a sharp sell-off in crypto markets and other “Trump 2.0 equity trades.” He is predicting a vicious sell-off ahead of a rebound later in 2025.
The co-founder of BitMEX also revealed his investment fund Maelstrom’s strategy for navigating potential market turbulence. According to Hayes, the fund plans to sell some positions before Trump’s inauguration and aim to repurchase them at lower prices during the first half of 2025. While this approach carries risks, Hayes believes that it is necessary to protect investments.
Interestingly, Hayes’ warning comes amid Bitcoin’s surge past $100,000 following Trump’s victory in November 2024. Many analysts have linked this growth to expectations of favorable crypto policies under Trump. However, Hayes has urged caution, highlighting the disparity between bullish predictions from firms like Matrixport and his own cautious outlook.
Rumors are also circulating that MicroStrategy might pause its Bitcoin purchases in January 2025, which could impact market sentiment further.
The predicted correction may have far-reaching consequences for cryptocurrency investors and enthusiasts. As such, it is crucial to take Hayes’ warning seriously and prepare for potential market volatility ahead of Trump’s inauguration on January 20, 2025.
Source: coinchapter.com
