- Arthur Hayes predicts a “harrowing dump” in crypto markets around Trump’s inauguration.
- Hayes believes the market will recover, with Bitcoin hitting new highs in the long run.
What happened: Arthur Hayes warns of a market drop
Arthur Hayes, co-founder of Bitmex, has made a bold prediction for the cryptocurrency market, forecasting a significant downturn around President Trump’s inauguration day. In his recent opinion piece, “Trump Truth,” Hayes suggests that the recent growth in crypto might be undone by a “sell-the-news” event, as markets react to the new political administration. He believes Trump’s actions, specifically his plans to devalue the U.S. dollar in an attempt to boost domestic production, will lead to inflation and a surge in Bitcoin prices in the longer term. Despite short-term uncertainty, Hayes predicts the market will regain momentum and experience substantial growth after the second half of 2025.
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Why it is important
Hayes’ prediction carries significant weight due to his deep expertise in the cryptocurrency market and his proven track record of accurate market forecasts. His insights into the potential market downturn around Trump’s inauguration emphasize the impact that political events can have on crypto prices. According to Hayes, a “sell-the-news” event may trigger a short-term drop as investors react to the uncertainty surrounding the new administration. However, he sees the U.S. dollar’s anticipated devaluation as a longer-term catalyst for Bitcoin’s growth, suggesting that cryptocurrencies could serve as a hedge against inflation. The potential increase in the dollar’s money supply could drive up demand for Bitcoin and other digital assets, positioning them as an attractive alternative for investors seeking to preserve wealth. Hayes also believes the cryptocurrency market will recover and hit new highs by mid-2025. For traders and investors, staying attuned to these predictions could help in navigating market fluctuations and capitalizing on upcoming opportunities in both traditional and crypto markets.
