YEREVAN (CoinChapter.com) — Arthur Hayes, the co-founder of BitMEX, predicts a major crypto market sell-off tied to Donald Trump’s presidential inauguration on Jan. 20, 2025. In his recent blog post, “Trump Truth,” Hayes expressed concerns about the disparity between investor expectations and the timeline for actual policy changes.
Arthur Hayes cautioned that Trump’s crypto policy changes would take time to implement. “The market believes that Trump and his people can immediately achieve economic and political miracles,” Hayes wrote. He warned of a likely correction in cryptocurrency prices when the market realizes the slower pace of change.
Slow Crypto Policy Changes Could Shock Markets – Arthur Hayes
Hayes explained that while optimism surrounds Trump’s presidency, enacting significant crypto policies would face delays. He predicted this mismatch between expectations and reality could result in a sharp sell-off.
Hayes elaborated:
“The market will instantly wake up to the reality that Trump has, at best, one year to enact any policy changes on or around January 20th. This realization will lead to a vicious sell-off in crypto markets and other Trump 2.0 equity trades.”
According to Hayes, this sell-off will precede a rebound in cryptocurrencies, which he expects to enter a recovery phase later in 2025.
Hayes Reveals Maelstrom’s Plan to Sell Before Trump’s Inauguration
Hayes shared his investment fund Maelstrom’s strategy for navigating potential market turbulence. The fund plans to sell some positions before Trump’s inauguration, aiming to repurchase them at lower prices during 2025’s first half.
“Maelstrom will be lightening up on certain positions in advance, hoping to rebuy some core positions at lower prices sometime in the first half of 2025,”
Hayes noted.
He acknowledged that the strategy carries risks but emphasized that the fund is prepared for various outcomes.
“We are committed to admitting defeat if the bull market steamrolls through Jan. 20, licking our wounds, and getting back on the bull […] I will be buying dips and rips,”
Hayes said.
Hayes Urges Caution Amid Bitcoin’s Surge Past $100K After Trump’s Victory
Since Trump’s victory in November 2024, Bitcoin surged past $100,000 for the first time in early December. Many analysts connected this growth to expectations of favorable crypto policies under Trump.
However, Hayes urged caution, contrasting bullish predictions from firms like Matrixport, which projected a strong start for Bitcoin in 2025. Matrixport suggested that investors might regret not accumulating more BTC at current prices.
MicroStrategy Rumored to Pause BTC Purchases
Meanwhile, rumors reported by Protos suggested that MicroStrategy might enter a blackout period in January 2025. This would halt the company’s issuance of shares or convertible bonds used to purchase more Bitcoin, potentially impacting the market.
