As the cryptocurrency market prepares for a correction, the Coca-Cola of forex markets warns investors ahead of the U.S. President-elect Donald Trump’s inauguration in January 2025.
In his latest blog post, ‘Trump Truth,’ Hayes also said the crypto market would experience a massive sell-off on Trump’s inauguration day before it returned later in the year.
Crypto analysts and investors hope that seeing Trump back in the White House will be a good thing for the market and the execution of crypto friendly policies at the administration. But Hayes worries that these lofty expectations won’t be met because this is a gap between what markets expect and what it takes to turn policy into action.
“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 realization will lead to a vicious sell-off in crypto and other Trump 2.0 equity trades.”
But Hayes wrote that the market believes that Trump and his people can do miracle economic and political work without delay. But ‘there are no politically acceptable solutions in the short term.’
Hayes said that investors might expect that meaningful crypto policies, such as national Bitcoin reserves, or clearer regulatory rules might not come about nearly as soon as we might like.
Hayes Predicts Crypto Sell-Off, Offers Long-Term Investment Opportunities
In his post, Hayes says it’s not very pretty; crypto markets are imploding, and Trump is about to be inaugurated. He expects a Crypto crackup boom in 2025, and if Crypto can forgo total failure through collapse, the ‘Crypto game long’ will be better than any time over. If Hayes is right, this interim correction will offer long-term investors buying opportunities.
Hayes’ family office investment fund Maelstrom also intends to wound down its cryptocurrency positions before a market crash is anticipated. During the first half of 2025, they want to rebuy these positions at lower prices.
Hayes said Maelstrom will lighten up on some positions before it buys back some of its core positions at cheaper prices. He argued that this strategy made sense, given the cyclical nature of investor behavior, noting that many long-term holders are ill-prepared for market volatility and sell too early.
The cryptocurrency market has been rising since Trump’s victory in November 2024. A wave of investor optimism around Bitcoin was propelled in early December with news that Bitcoin hit its all-time high of $100,000, as regulation changes under Trump’s administration could help to encourage Bitcoin. Many investors will think back on opportunities they missed buying in 2025, say analysts from a Singapore-based crypto platform.
The bullish narrative is that Trump’s policies will bring Bitcoin and DeFi to the mainstream, something Matrixport has also echoed. You shouldn’t expect markets to return to normal in early 2025, and Hayes isn’t the only one who’s thinking that.
#Matrixport Today 📉 – Dec 18: #Bitcoin’s 2024 Rally: A #Bullish Setup for 2025 #cryptomarket #MarketTrends #MarketInsights #CryptoInvesting #Crypto #BTC pic.twitter.com/EWlVoYvc7Z
— Matrixport Official (@Matrixport_EN) December 18, 2024
According to Protos, rumors fly about Bitcoin’s biggest institution holder going black in January 2025. That would temporarily cut off the company from auctioning shares and convertible bonds bought with Bitcoin, which might cause some market uncertainty.
This is a warning to temper expectations. The preparedness of crypto regulation’s path forward in Trump’s presidency may be a pivotal point, but we wait to see volatility. This is an important moment for the market, and investors will be tuned in to observe how Trump’s policies, the state of the market, and the structure of institutional activity will bring about crypto’s transition from 2025.
