Crypto Crash Imminent Near Donald Trump’s January 2025 Oath, Arthur Hayes Predicts

Key Takeaways

• Arthur Hayes predicts a sharp downturn in crypto markets around Trump’s Jan. 20, 2025, inauguration.
• Hayes sees this as a short-term market correction before the next growth phase.
• He said crypto investors may overestimate how quickly Trump can enact meaningful change.

Arthur Hayes, co-founder of BitMEX and a macroeconomic strategist at Maelstrom, is sounding the alarm on impending turbulence in the crypto markets as Donald Trump’s potential return to the White House looms.

While the broader bull market shows no signs of slowing, Hayes predicts a sharp, disruptive downturn before the market transitions into what he calls the “crack-up-boom” phase of the current cycle.

Crypto To Crash In January

Positioning his firm for the anticipated shake-up, Maelstrom is preparing to scale back its exposure. In the first half of 2025, it plans to strategically reacquire key holdings at discounted prices.

“While many traders strive to time the market, they often sell too early. They lack the confidence to rebuy at higher prices, ultimately missing out on the full bull market,” Hayes wrote.

Hayes added that by acknowledging this risk, he and his team are prepared to adapt if the market defies expectations and surges through Jan. 20. He expects they can quickly reenter positions as needed.

“Trump’s policies highlight structural flaws in the global financial system. This strengthens our conviction that Bitcoin and crypto offer the best long-term returns.”

“With this outlook, we remain committed to buying both market dips and rallies,” Hayes added.

Trump’s Return: A Catalyst for Market Volatility