Hayes says Bitcoin reserves are difficult to realize, warns of potential Bitcoin sell-off during Trump era
Former BitMEX head Hayes recently reminded everyone that Bitcoin may face a "big sell-off" after Trump takes office.
He wrote a blog stating that Trump's grand plans for cryptocurrency, such as making the U.S. the "global cryptocurrency leader" and establishing Bitcoin reserves, are quite uncertain.
Hayes believes that the Trump administration only has a little over a year to implement reforms, facing significant political pressure, and with the 2026 midterm elections stirring things up, it will be even harder to accomplish anything.
"Trump wants to satisfy his supporters but can't prevent the Democrats from reclaiming legislative power in 2026; everyone is losing patience and getting anxious," he wrote. He also mentioned that once the market realizes this, both Bitcoin and other “Trump concept stocks” will likely face a "severe drop".
Speaking of Bitcoin reserves, Hayes feels this idea is unreliable. He said that just proposing to establish reserves could lead to a complete buyout of Bitcoin.
Hayes speculated that if the U.S. government prints money to devalue the dollar and then uses that to buy Bitcoin, the price of Bitcoin will have to rise. Other countries will surely follow suit, driving the price of Bitcoin even higher.
However, Hayes feels that while long-term Bitcoin holders may sell at high prices in the future, the establishment of Bitcoin reserves in the U.S. is unlikely. He said politicians are more inclined to use newly printed money for populism to gain votes.
Hayes also believes that with the help of economic advisor Bessenet, Trump will quickly devalue the dollar, possibly starting in the first half of 2025, taking action to devalue the dollar against gold. This move aims to make the U.S. economy more competitive, boost domestic production, and garner votes for the Republican Party.
Hayes predicts that if mainland investors can buy Bitcoin ETFs in Hong Kong, then "there's hope for a cryptocurrency bull market again." He also mentioned that the EU might secretly buy cryptocurrencies while watching the public suffer from inflation.
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