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Arthur Hayes, the former CEO of BitMEX, has predicted a significant sell-off in the cryptocurrency market on January 20, 2025, coinciding with Donald Trump’s inauguration as President of the United States. In an unexpected move, Hayes has warned investors that the gap between high expectations and reality could lead to a sharp correction in the crypto market.
As the inauguration draws near, Hayes believes that investors’ optimism may prove unsustainable, particularly if the new administration fails to deliver on their promises to implement rapid policy changes benefiting the industry. The former BitMEX CEO emphasized that many structural challenges facing the sector would take more than a decade to resolve and that this disparity between market expectations and actual results could trigger a massive sell-off.
Hayes’ prediction stems from his understanding of the limited timeframe for implementing significant reforms before the end of 2025, as the U.S. Congress will shift its focus to midterm elections in 2026. Furthermore, he believes that even under an administration dedicated to pro-crypto measures, it would take years to create lasting positive change.
In light of this outlook, Maelstrom has decided to reduce its exposure to certain cryptocurrencies before Trump’s inauguration date, anticipating a potential sharp drop in market values. However, Hayes acknowledges that the current bullish trend could continue even after the inauguration, leaving open the possibility for adjustments and re-entry into the crypto market.
Hayes’ warning serves as a cautionary note for investors who have fueled recent growth with optimism surrounding a Trump presidency.
Source: crypto-economy.com
