Arthur Hayes: Crypto Market Could Face a Sharp Decline After Trump’s Inauguration
Renowned investor Arthur Hayes has warned that the cryptocurrency market could experience a significant downturn following Donald Trump’s inauguration.
Hayes stated that after Trump officially takes office on January 20, markets could see “sharp and painful” declines.
He also emphasized that while the crypto community has high expectations from Trump, it is unrealistic to expect these expectations to be met in the short term.
Hayes: The Market Will Face Reality!
Hayes believes that the short-term expectations of the crypto world regarding Trump are unlikely to materialize. He predicts that once it becomes clear that these expectations will not be met immediately, the market will enter a downtrend. He stated:
“The market will start to face reality. If it becomes evident that Trump will need at least a year to implement crypto-friendly changes, everyone will wake up. Therefore, I expect declines in both cryptocurrencies and stocks that have surged with Trump’s rise.”
Hayes also added that resolving global and domestic issues in the U.S. could take at least a decade:
“Many people buying in with short-term expectations will later experience deep regrets,” he said.
Are Hayes’ Predictions Accurate?
Over the past two years, many of Hayes’ predictions—particularly regarding the crypto market—have not materialized, and some have been proven incorrect.
Hayes had long anticipated a significant surge in altcoins, yet these predictions have not come true. In the summer of 2023, he decided to sell his entire altcoin portfolio, believing that the Israel-Iran conflict would escalate and geopolitical events would become more complex.
This decision sparked significant curiosity among investors, as Hayes openly expressed his loss of confidence in altcoins. However, shortly after, he reversed his decision and continued making altcoin recommendations.
Doubts Surround Hayes’ Predictions in the Investment Community
While serious doubts have been raised about Arthur Hayes’ market predictions within the investment community, some view his decision to re-enter the market as a positive development.
Hayes acknowledged in a blog post that many of his forecasts had failed to materialize, admitting that this left him with significant regret. It was almost a confession piece.
In this post, he emphasized that he has learned from his incorrect predictions and risky investment decisions, promising to adopt a more cautious approach moving forward.
Hayes’ Aethir Investment
Additionally, a major setback affected the portfolio of Maelström, the family office managed by Hayes.
Hayes suffered significant losses in his investment in the Aethir (ATH) project.
Initially seen as a promising investment opportunity, Aethir failed to meet expectations.
Due to the project’s underperformance and unfavorable market conditions, Hayes decided to sell all his holdings in Aethir.
This decision, regarded as one of Hayes’ biggest investment mistakes in recent years, made waves in the crypto world.
These events have led to a decline in confidence in Hayes’ market predictions.
However, despite all these setbacks, he continues to make a comeback and offer investment advice, making him both a subject of criticism and a closely watched figure in the crypto community.
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