Donald Trump Inauguration May Mark Crypto Dump: Arthur Hayes
Former BitMEX CEO Arthur Hayes believes digital assets will fall victim to a “harrowing dump” following the January 20 inauguration of President-elect Donald Trump, a new Substack from the crypto mogul shared this week shows.
Donald Trump Inauguration May Signal Selloff, Ex BitMEX CEO Says
According to Hayes’ prediction, anticipated policy changes regarding the crypto market under Trump will fall short of their expectations, potentially creating a selloff scenario.
Hayes further claimed that his investment firm Maelstrom will begin to sell “certain positions” before repurchasing them at a later date for a lower price.
“I think there exists a wide gap between crypto investor’s high expectations for how quickly Trump can change things and the reality that there are no politically acceptable solutions available to Trump to quickly bring about such change,” he states in his latest blog post.
However, Hayes also accepts the possibility of him being wrong should the crypto market continue to balloon.
“Knowing this, we are committed to admitting defeat if the bull market steamrolls through January 20th, licking our wounds, and getting back on the bull,” he said.
Arthur Hayes’ Crypto History
Hayes is best known for running the cryptocurrency exchange BitMEX, though he notably stepped down in 2020 after federal prosecutors charged him with violating key Bank Secrecy Act provisions.
In February 2022, Hayes and his fellow BitMEX co-founders pleaded guilty to failing to maintain an adequate anti-money laundering program at the company.
As a result, the Detroit-born businessman was sentenced to six months home confinement and two years probation; additionally, he was ordered to pay a $10 million fine.
News of Hayes’ commentary comes ahead of President-elect Donald Trump’s inauguration next month after he campaigned hard in support of digital assets on the campaign trail.
The former reality television, who recently launched his family’s crypto platform World Liberty Financial, has pledged to enact a crypto-friendly regulatory framework upon returning to the Oval Office.
“We will have regulations,” Trump stated at the Bitcoin 2024 Conference this past summer, adding, “but from now on, the rules will be written by the people who love your industry, not hate your industry.”
Prior to winning last month’s election, Trump vowed to fire current United Securities and Exchange Commission Chair Gary Gensler over his regulation-by-enforcement approach to the blockchain sector as a whole.
Gensler, who has since announced his resignation, is slated to be replaced by crypto-friendly former SEC Commissioner Paul Atkins.
Source: cryptonews.com
