Originally published on: December 18, 2024
As the world eagerly awaits the inauguration of United States President-elect Donald Trump in January 2025, many market commentators have been optimistic about the potential positive impact on the cryptocurrency market. However, BitMEX co-founder Arthur Hayes has a different perspective that may shake up the forecasts.
Hayes warns against overly optimistic expectations regarding quick crypto policy changes promised by the incoming President. In his recent blog post titled “Trump Truth,” Hayes revealed that his investment fund, Maelstrom, is preparing to make strategic moves to capitalize on potential market fluctuations in the early days of 2025.
While most forecasts anticipate national Bitcoin reserves to be created, Hayes remains skeptical, emphasizing the significant time and effort required for the implementation of any crypto policy changes. He believes that the market’s high expectations do not align with the reality of the political landscape, which may lead to a bearish market trend around Trump’s inauguration.
According to Hayes, Maelstrom will be adjusting its positions to take advantage of potential price drops in the first half of 2025, aiming to buy back at lower prices. He stresses the importance of long-term investment strategies in a volatile market where “hodlers” often sell prematurely.
The crypto market has experienced a significant rally following Trump’s victory in the presidential election, with Bitcoin reaching historic highs above $100,000 in December. Despite the positive outlook shared by many analysts, Hayes remains cautious about the market’s reaction to Trump’s presidency.
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