Arthur Hayes Predicts Huge Crypto Market Selloff on Trump’s Inauguration Day in 2025

• Arthur Hayes Predicts Crypto Crash at Trump’s Inauguration in 2025
• Maelstrom Reduces Cryptocurrency Exposure in Anticipation of Correction
• Pro-crypto expectations may not come to fruition quickly

Arthur Hayes, former CEO of BitMEX and current chief investment officer of Maelstrom, has warned of a potential sharp drop in the cryptocurrency market as Donald Trump approaches his inauguration as US president on January 20, 2025. Hayes believes that the disparity between investor expectations and the new administration's actual ability to quickly implement industry-friendly policies could trigger a significant correction in cryptocurrency prices.

Trump Truth https://t.co/RtuPQn524T

- Arthur Hayes (@CryptoHayes) December 18, 2024

Since Trump’s election victory in November, the cryptocurrency market has seen remarkable growth, with Bitcoin reaching an all-time high of $108.260. This surge has been driven by optimism regarding Trump’s promises to take pro-crypto measures, including the creation of a strategic national Bitcoin reserve. However, Hayes warns that these expectations may be unsustainable in the short term.

In his analysis, Hayes highlights that the window to implement meaningful reforms is limited. He argues that substantial policy changes would need to occur before the end of 2025, as the U.S. Congress, especially the House of Representatives, will turn its attention to the midterm elections in 2026. Furthermore, Hayes points out that many of the structural challenges facing the cryptocurrency sector and the broader economy would take more than a decade to resolve, even under an administration dedicated to these goals.

Given this outlook, Maelstrom decided to reduce its exposure to certain cryptocurrencies ahead of Trump’s inauguration, anticipating a potential sharp correction in the market. However, Hayes acknowledges that this strategy is not without risk, as the market could continue its bullish trend even after the inauguration. In that case, the firm would be prepared to adjust its position and reinvest in the crypto market to take advantage of the ongoing bull cycle.

Hayes emphasizes that a market crash will occur when investors realize that Trump will not be able to deliver on all of his crypto-related promises. He states: “The market will instantly wake up to the reality that Trump has at most a year to implement any policy changes by January 20th. This realization will lead to a sell-off in cryptocurrencies and other assets associated with Trump 2.0.”

Despite the uncertainties, Hayes maintains a flexible stance and is willing to adjust his investment strategies as the market evolves, indicating that he will continue to buy Bitcoin and other crypto assets during market declines and recoveries.