BitMEX co-founder Arthur Hayes believes that the promises of Bitcoin being used as a strategic reserve across US states will not be fulfilled.
Arthur Hayes, a prominent crypto entrepreneur and one of the co-founders of leading crypto exchange BitMEX, stated that on January 20, the day president-elect Donald Trump begins his tenure as the new United States president, the crypto market will witness a “harrowing dump” with Bitcoin BTC $111 060 24h volatility: 1.8% Market cap: $2.21 T Vol. 24h: $69.88 B and altcoins nosediving significantly after the recent monumental gains.
In a blog post titled “Trump Truth”, Hayes stated that a “maelstrom will be lightening up on certain positions in advance” on Trump’s inaugural day as market participants will aim to purchase cryptocurrencies at lower prices sometime in the first half of 2025. The crypto entrepreneur advised investors to buy more Bitcoin if such a dip comes while “licking our wounds and getting back on the bull.”
Hayes noted that Trump and his pro-crypto army have very little time to complete all the promises made across the various campaign speeches, adding that the billionaire cannot “immediately achieve economic and political miracles.” Additionally, during the first 100 days in the office, Hayes expects Trump to be focused on “massive dollar vs. gold devaluation” because it is “an easy way to make production costs globally competitive in America quickly.”
The BitMEX founder said that USD vs. gold devaluation would result in “immediate re-shoring of productive capacity”, which would then lead to a surge in hiring, a demand of citizens that the Joe Biden administration failed to fulfill.
On the other hand, Hayes also believes that the promises of Bitcoin being used as a strategic reserve across US states will not be fulfilled. While confirming that he owns physical gold bars in vaults and junior gold mining exchange-traded funds (ETFs), the BitMEX founder added that just the threat of making BTC a strategic reserve asset will create buying pressure for the leading digital asset.
Leading Crypto Asset Makes a New ATH
In the past 24 hours, Bitcoin made a new all-time high, breaking above the $108,000 price level for the first time in history. Currently trading at $103,935.27, BTC has dropped 3.04% in the past 24 hours and has a market cap of $2.05 trillion. The cryptocurrency has also skyrocketed 13.27% in the last 30 days and now eyes the $125,000 price level, as it was predicted by Matrixport a year ago.
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Source: TradingView
The Relative Strength Index (RSI) for Bitcoin reads a value of 63.62, which means that the bulls are still in control of the cryptocurrency’s price action, and the gradient of the RSI line suggests that a retest of $100,000 might be seen in the near future. The digital asset was overbought for a long time and is now undergoing a consolidation phase.
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