Since Donald Trump was elected President of the United States, the cryptocurrency community has been fervently excited, anticipating that the new government will promote more friendly policies that will boost Bitcoin prices significantly. In this regard, BitMEX founder Arthur Hayes warned that the market's overly high expectations may struggle against the realities of political constraints. He also predicts, 'Around the time of Trump's inauguration, Bitcoin will experience a thrilling plummet.'
Arthur Hayes believes that many people in the cryptocurrency circle are overly optimistic, expecting that the Trump administration will immediately push for policy reforms to inject positive news into the cryptocurrency market. However, political operations do not have a so-called 'fast track'.
Arthur Hayes emphasized, 'Trump has only about a year for major reforms.' He explained that by the end of 2025, as the midterm elections approach, Congress members will be fully focused on the elections, inevitably slowing legislative progress. At that time, not only will Trump's reform efforts be limited, but the Republican majority in Congress may also be threatened.
Arthur Hayes added: 'The social and economic issues that brought Trump to power are the result of decades of accumulation and cannot be resolved in a few months.' He also anticipates that once investors realize the limited progress on policies, market confidence will quickly collapse, and a sell-off may sweep across the entire cryptocurrency sector.
Before we enter the 'crash phase' of this bull market, I believe the cryptocurrency market will experience a thrilling decline around Trump's inauguration on January 20, 2025.
Arthur Hayes revealed that to respond to market volatility, his family office Maelstrom will proactively reduce certain positions and hopes to buy back some core positions at a lower price in the first half of 2025.
"Be cautious around Trump's 'inauguration period'! Arthur Hayes: Bitcoin may plummet" was first published on (Blockcast).
