Arthur Hayes Predicts Crypto Market Dump on Trump’s Inaugural Day
Arthur Hayes, co-founder of crypto exchange BitMEX, predicts a significant decline in the crypto market on January 20, coinciding with President-elect Donald Trump's inauguration. He anticipates Bitcoin and altcoins will drop after recent gains.
In his blog post “Trump Truth,” Hayes mentioned that market participants may liquidate positions in anticipation of purchasing cryptocurrencies at lower prices during the first half of 2025. He advised investors to consider buying more Bitcoin if a dip occurs, suggesting a return to bullish sentiment afterward.
Hayes stated that Trump has limited time to fulfill campaign promises and cannot achieve immediate economic changes. He expects Trump's focus during the first 100 days to be on “massive dollar vs. gold devaluation” to enhance global competitiveness for American production.
This devaluation could prompt a “re-shoring of productive capacity,” leading to increased hiring, addressing unmet demands from the previous administration. However, Hayes doubts that Bitcoin will be adopted as a strategic reserve by US states but believes the mere suggestion of it will create upward pressure on Bitcoin's price.
Leading Crypto Asset Makes a New ATH
Bitcoin reached a new all-time high, surpassing $108,000 for the first time, currently trading at $103,935.27, reflecting a 3.04% decrease over the past 24 hours and a market cap of $2.05 trillion. Over the last 30 days, it has risen 13.27% and aims for the $125,000 mark, as predicted by Matrixport.
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Source: TradingView
The Relative Strength Index (RSI) for Bitcoin is at 63.62, indicating that bulls maintain control over the price action, with potential for a retest of the $100,000 level in the near term. After being overbought, Bitcoin is now entering a consolidation phase.