Crypto: Trump's Inauguration Will Trigger A Massive Collapse, Predicts Hayes

Arthur Hayes, co-founder of BitMEX, is known for his bold predictions about the crypto market. And this time, he strikes hard. According to him, Donald Trump’s inauguration could trigger a collapse in the crypto market. While many anticipate favorable political changes for crypto assets, Hayes seems to be swimming against the tide. His strategy? To reduce his short-term positions to return to lower prices in 2025.

Donald Trump, the real danger for cryptos?

Arthur Hayes, the man who dropped Bitcoin for Solana, is not one to go with the flow, and his latest warning is not an insignificant detail. Donald Trump’s inauguration could shake the crypto market much more violently than expected. While everyone sees Trump as a potential champion of crypto, Hayes warns against excessive expectations.

In a post titled “Trump Truth”, he predicts an immediate crash around January 20, 2025. The idea behind this brutal drop? A collective disappointment at the lack of concrete and rapid reforms in the crypto field.

Trump’s inauguration may trigger crypto sell-off, says Arthur Hayes

Arthur Hayes published a “Trump Truth” blog post forecasting a massive crash in crypto markets following Donald Trump’s presidential inauguration in January.https://t.co/br5TzVEjFd

— Helen Partz (@coindanslecoin) December 18, 2024

« The market believes that Trump and his allies will perform economic miracles overnight », declares Hayes, but one must not forget that policies take time to implement.

The president will have at best one year to fulfill his promises. This could provoke a violent reaction in the markets, pushing many investors to sell in panic.

Until then, Hayes and his Maelstrom fund intend to lighten their positions to prepare for a strategic low-cost purchase, a strategy that reflects his short-term pessimism.

• Hayes’ forecast: a massive sell-off around January 20;
• Overly high expectations about Trump’s crypto policies;
• A possible recovery, but not before the second half of 2025.

Hayes’ predictions for 2025

Arthur Hayes, with his sharp market analysis, believes that the year 2025 will be the year of the great reversal for crypto, but not necessarily in the way enthusiastic investors expect. After a likely plunge at the beginning of the year, the expert predicts a “crack-up-boom” in the second half of 2025.

This is where the real question arises: how will the adoption of bitcoin and other cryptos evolve in such an uncertain political context?

The key to the reversal, according to Hayes, lies in investor psychology. Those who bought crypto during the euphoria of the 2023-2024 bull run may find themselves trapped in a selling spiral, while those who stayed out risk seeing the recovery slip through their fingers. Hayes does not hide his strategy:

« If the market plunges after Trump’s inauguration, I will be there to buy at low prices, because there will definitely be a rebound at some point. »

But beware, this is not a forecast of immediate gains. « There is a timing to respect », he warns, mentioning a slow re-evaluation of the crypto market in 2025.

Let’s not forget that last November, Hayes already predicted that Donald Trump would not be the trigger for the next bitcoin bull run. According to him, it is China that will play a decisive role in the relaunch of crypto, while the Trump effect will only be a mirage.