Prominent crypto market analyst and former CEO of BitMEX Arthur Hayes is predicting a “sad plunge” in the digital asset market near the inauguration of President-elect Donald Trump. However, Hayes adds that the expected market crash will be followed by a strong bullish trend reversal.
Hayes Warns of Excessive Expectations From Trump
Renowned crypto market analyst Hayes has shared a new blog post detailing his views on the trajectory of the crypto market in the coming year. According to Hayes, the disconnect between the high expectations of the crypto market in Trump’s incoming administration and the political reality will likely disturb investors, causing a significant sell-off in the market.
Hayes points to the market’s unrealistic expectations from Trump, saying it’s “almost impossible for Trump to appease his base enough to prevent Democrats from taking both legislative bodies in 2026.” As a result, Trump will have, at least, one year to stop any policy changes.
A crypto entrepreneur has warned that the market implementation of these restrictions will cause “brutal sales” of digital assets. He revealed that his investment fund, Maelstrom, plans to book profits ahead of the expected sell-off and re-enter the market at lower prices during the first half of 2025. However, Hayes noted that he is open to “admitting defeat” if no market correction occurs on January 20.
Trump’s victory in the US presidential election caused a new optimism in the crypto market, which led BTC to rise past the $100,000 price level for the first time. At the time of writing, the total crypto market stands at $3.81 trillion.
Trump’s victory also fueled speculation about the creation of potential strategic Bitcoin hubs, a move that could spur import competition. Well, Hayes this is not the case expect such a cache to happen anytime soon. He explained:
Although I do not believe that the US government will buy Bitcoin, that does not affect my positive price view. At the end of the day, falling gold creates dollars that should find a home for real goods/services and financial assets.
Different Predictions of BTC Price Action
While Hayes foresees the upcoming crypto market crash in early 2025, the crypto financial services company Matrixport predicts otherwise. According to the latest X postedthe company expects a “strong start” for BTC to 2025.
Similarly, Standard Chartered bank measurements that BTC could rise to $200,000 by 2025 as many institutions continue to accumulate high-value digital assets. The latest report of the crypto exchange Bitfinex and he predicts another possible rise in BTC after its consolidation around the $100,000 price level.
An even more bullish price target was shared by Bitwise’s Matt Hougan, who said said that buying BTC before it reaches $500,000 would still be considered “premature.” At press time, BTC is trading at $104,002, down 2.8% in the last 24 hours.
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