Since Donald Trump was elected President of the United States, the cryptocurrency community has been fervently excited, hoping that the new government will push for more favorable policies to boost Bitcoin prices. 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 Trump's inauguration, Bitcoin will experience a breathtaking crash.'
Arthur Hayes believes that many people in the cryptocurrency space are overly optimistic, expecting that the Trump administration will immediately push for policy reforms to inject positive sentiment into the cryptocurrency market. However, political operations do not have a so-called 'fast track.'
Arthur Hayes emphasized, 'If Trump wants to push for significant reforms, the time window is likely only one year.' He explained that by the end of 2025, with the midterm elections approaching, Congress members will be fully focused on their election campaigns, and legislative progress will inevitably slow down. At that time, Trump's reform efforts will not only be limited, but the Republican Party's majority status 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 solved in a few months.' He anticipates that once investors realize the limited progress on policies, market confidence will rapidly collapse, and a sell-off could sweep across the entire cryptocurrency sector.
Before we enter this phase of 'collapse' in the current bull market, I believe the cryptocurrency market will experience a breathtaking drop around Trump's inauguration on January 20, 2025.
Arthur Hayes revealed that to respond to market volatility, his family office Maelstrom will reduce certain positions in advance and hopes to buy back some core positions at a lower price in the first half of 2025.
"Be careful around Trump's inauguration! Arthur Hayes: Bitcoin may plummet" This article was first published on (Blockke).
