With the approaching US Presidential inauguration on January 20, 2025, former BitMEX CEO Arthur Hayes has made a pessimistic prediction for the crypto market. In his latest essay, Hayes suggested that crypto will experience a ‘harrowing dump’ around Donald Trump’s inauguration day.
Crypto Revolution in the US to Commence Slowly
Hayes, who now manages a family office named Maelstrom, believes that crypto policy changes under Trump’s administration will unfold gradually. While many crypto investors anticipate rapid transformation in the US political landscape under Trump, Hayes argues that there are no politically feasible solutions for quick change.
“The market will soon realize that Trump has, at most, one year to implement any policy changes by or around January 20th. This realization will trigger a severe sell-off in crypto and other Trump 2.0 equity trades,” Hayes wrote.
Despite this gloomy forecast, Hayes remains optimistic about the potential of the crypto market. He expressed confidence that the current crypto bull market will still enter a booming phase. Nonetheless, Hayes predicts that the crypto markets will initially face a challenging period around Trump’s inauguration day on January 20, 2025.
Hayes also mentioned that Maelstrom will strategically position itself in anticipation of repurchasing core positions at lower prices in the first quarter of 2025. Hayes believes that many crypto holders will sell their tokens earlier in the year due to lack of conviction.
“Given this scenario, we are prepared to acknowledge defeat if the bull market continues through January 20th, regrouping and rejoining the bull,” Hayes stated.
Therefore, he advised investors to consider buying more Bitcoin if such a dip occurs. Hayes credits Trump for highlighting the structural flaws in the global order. He praised Trump for demonstrating that owning Bitcoin and crypto is the most profitable way forward.
Bitcoin Continues Bullish Momentum
Interestingly, the crypto market, particularly Bitcoin (BTC), has continued to benefit from Trump’s victory in the US November election. Bitcoin’s price has surged over 50% since Trump’s win, soaring from around $68,000 to a record-high of $108,268. Currently, BTC is trading at $104,133, representing a 3.15% decrease in the last 24 hours. However, the leading coin has still gained 5.29% in the past week and 14.5% in the past month.
Trump’s victory has fueled expectations for significant changes in crypto regulation. The former president has pledged to make significant moves in the crypto space, including establishing a national Bitcoin strategic reserve.
The recent surge in spot Bitcoin exchange-traded funds (ETFs) has also contributed to Bitcoin’s upward momentum. In the past week, spot BTC ETFs, led by BlackRock’s IBIT and Fidelity’s FBTC, attracted a remarkable $2.17 billion in net cash inflows, as reported by CNF.
There is optimism that Bitcoin will continue its surge in the coming days, with many market analysts targeting a price of $150,000 for BTC by the end of 2024.