Arthur Hayes, a well-known figure in the cryptocurrency industry, has expressed concerns about a potential downturn in the digital assets market coinciding with President-elect Donald Trump's inauguration.
Hayes believes that there is a disconnect between the high expectations surrounding Trump's administration and the political realities that may hinder substantial policy changes. He predicts that this dissonance could lead to a significant drop in the crypto market as investors reassess their positions.
Hayes also highlights the challenges Trump may face in satisfying his base and suggests that it is unlikely for him to prevent the Democrats from regaining control of both legislative bodies by 2026. Hayes anticipates a sell-off in digital assets as the market comes to terms with these constraints.
Despite Hayes' bearish forecast, other financial institutions have a more optimistic outlook for Bitcoin. Matrixport expects a strong start for BTC in the new year, while Standard Chartered bank estimates that Bitcoin could reach as high as $200,000 by 2025. The interplay between political developments and market dynamics will be closely monitored by investors and analysts as the cryptocurrency landscape continues to evolve.