Arthur Hayes predicts crypto decline after Trump’s inauguration

Arthur Hayes, the co-founder and former CEO of BitMEX, has forecasted a potential downturn in the crypto market after Donald Trump’s inauguration on January 20, 2025.

According to Hayes, while Trump’s recent presidential victory has sparked optimism within the crypto market, the bullish trend may not continue for long.

During his campaign, Trump won favor among crypto supporters with promises including replacing the Securities and Exchange Commission (SEC) chairman Gary Gensler, eliminating Bitcoin taxes, establishing the U.S. as the world’s crypto capital, and building a national BTC stockpile.

Trump has already taken steps toward fulfilling these promises, such as nominating Paul Atkins as Gensler’s replacement.

However, Hayes pointed out that the president will face significant political hurdles.

He noted that most U.S. legislators begin campaigning for the 2026 mid-term elections by the end of 2025, which means Trump may not be able to implement his crypto-related policies immediately after taking office.

As a result, Hayes predicts that the market will experience a “harrowing dump” once investors realise that any changes are unlikely to occur quickly.

“The market will instantly wake up to the reality that Trump has at best one year to enact any policy changes on or around January 20th. This realisation will lead to a vicious sell-off in crypto and other Trump 2.0 equity trades. Investors are setting themselves up for severe buyer’s remorse,” Hayes wrote.

However, Hayes also suggested that the market could continue its bullish trend after Trump’s inauguration.

He stated that he plans to buy the "dips and rips" of Bitcoin and other crypto assets, regardless of the market's direction.