Cryptocurrency prices will experience a "gut-wrenching" crash when Donald Trump takes office: Arthur Hayes

Cryptocurrency veteran Arthur Hayes believes digital asset markets will experience a "gut-wrenching" crash next month.

Long-standing economic problems will make it "almost impossible" for U.S. President-elect Donald Trump to retain control of both houses in 2026, meaning he won't have much time to achieve his policy goals, the BitMEX co-founder said in a new analysis.

"People are impatient because they are desperate. Trump is a savvy politician who understands his base. To me, that means he has to do something big and sooner rather than later, which is why I'm betting on a significant depreciation of the dollar against gold within 100 days of his inauguration. This is an easy way to make U.S. production costs globally competitive quickly. This will lead to an immediate reshoring of production capacity, which will lead to increased hiring today, not five years from now.

Before we enter the crash phase of the crypto bull market, I believe the crypto market will experience a painful crash around Trump's inauguration on January 20, 2025. Maelstrom will be selling off some positions early, hoping to re-enter some core positions at lower prices sometime in the first half of 2025."

Maelstrom is Hayes' family office fund

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