Arthur Hayes Predicts Imminent Bitcoin Correction by January 2025

Cryptocurrencies are expected to undergo a “painful crash” around the time of Donald Trump’s inauguration on January 20, 2025, before reaching the peak of the current bull market. This view was expressed by former BitMEX CEO Arthur Hayes.

Trump Truth https://t.co/RtuPQn524T

— Arthur Hayes (@CryptoHayes) December 18, 2024

In an essay titled Trump Truth, the expert reiterated his forecast of Bitcoin rising to $1 million. The primary driver will be the economic policy of the elected US president, which will lead to the devaluation of the dollar, an increase in fiat money supply, and a surge in demand for cryptocurrency.

In his new article, Hayes noted that Trump does not have much time to fulfill his promises, including the reindustrialization of the country and strengthening the global position of the national currency.

“The market believes that Trump and his team can immediately achieve economic and political miracles. The issues that led to his popularity have been accumulating for decades. Thus, there are no immediate solutions, regardless of what Elon Musk tells you on X,” the expert stated.

In his view, there is virtually no chance that Republicans will retain a majority in the House of Representatives and the Senate after the 2026 elections. For this reason, Trump will act swiftly, massively devaluing the dollar against gold within the first 100 days of his presidency.

Hayes believes that the American currency is already overvalued at the current gold prices of ~$2700 per ounce. He suggested levels of $10,000-20,000.

“This is a simple way to quickly make the cost of production in America competitive on a global scale. It will lead to the immediate return of manufacturing capabilities, allowing for increased hiring today, not in five years,” the expert emphasized.

The largest economies will be forced to react to US actions. China has already indicated that it will intensify its policy of quantitative easing, weakening the yuan, Hayes noted.

This will stimulate demand for assets with limited supply, such as gold and Bitcoin, he is convinced.

Considering Trump’s potential economic policy, Hayes doubted the creation of a national strategic reserve of the first cryptocurrency (SBR). The administration will prefer to use printed “empty” dollars for the benefit of voters rather than purchasing Bitcoins, he predicted.

Earlier, CEO of Satoshi Action Fund Dennis Porter promised to organize an “SBR wave” at the state level if federal authorities do not hasten the implementation of the initiative.

Relevant bills have already been introduced in Texas, Pennsylvania, and Ohio.