Analysts and experts in the digital asset sector anticipate favorable market movements following President-elect Donald Trump’s January 2025 inauguration, yet Arthur Hayes, co-founder of BitMEX, offers a contrasting viewpoint.
He warned against the optimistic outlook regarding Trump’s quick crypto regulatory changes, pointing out the gap between investor hopes and the practical hurdles of policy implementation.
Hayes’ View on Crypto Sell-Off
According to his Trump Truth blog post, Hayes revealed that his investment fund, Maelstrom, intends to reduce certain holdings initially, aiming to repurchase at reduced valuations during the first half of 2025.
Contrary to numerous forecasters, Hayes is skeptical that the United States and other countries will soon begin accumulating national Bitcoin reserves.
Hayes noted that the market assumes Trump and his administration can instantly deliver economic and political breakthroughs. He emphasized the gap between crypto investors’ hope and the lack of swift, viable political solutions.
The executive further anticipated that implementing any crypto policy reforms would probably take considerably longer than market participants might assume.
“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 and other Trump 2.0 equity trades,” Hayes said.
Hayes predicted a sharp downturn in the crypto market near Trump’s inauguration, followed by a surge-driven boom phase later in 2025.
The executive also anticipates a significant market decline around Trump’s January inauguration, prompting Maelstrom, the investment fund operated by his family office, to exit certain positions with plans to reinvest at reduced valuations.
Hayes added that Maelstrom intends to reduce specific holdings ahead of time and reacquire key assets at more favorable prices within the first half of 2025.
BTC Surpasses Price Mark
With several opinions about the crypto sector, the crypto market has experienced a significant surge following Trump’s win in the November presidential election. By early December, BTC had exceeded the $100,000 mark for the first time, profiting investors.
Numerous experts have predicted that Trump’s proposed crypto policies could push Bitcoin and decentralized finance into widespread adoption.
The crypto asset’s performance has attracted more retail and institutional investors, who have added BTC to their portfolios. Several countries also plan to make Bitcoin a reserve asset.
