Key Highlights:
- Arthur Hayes liquidated over $13 million in crypto assets, including ETH, ENA, and PEPE, shifting his focus to accumulating USDC.
- He indicated that the market could suffer due to President Trump’s tariffs and a disappointing U.S. jobs report, forecasting a bearish trend for cryptocurrency, with Bitcoin possibly testing $100K and Ether revisiting $3,000.
- The crypto market has experienced a dip of over 7.5% in the last week, with Bitcoin and Ether dropping 3.9% and 6.5%, respectively, as the prospects for interest rate cuts diminish and tensions escalate between the U.S. and Russia.
Background: Arthur Hayes, the co-founder of BitMEX, has divested more than $13 million in cryptocurrencies, which include Ether (ETH), ethena, and pepe. Data from Arkham Intelligence confirms this sell-off, leading to the accumulation of USDC, which now constitutes over 80% of the $27.9 million in the controlled address.
In his recent acquisition of USDC, he sold 2,373 ETH ($8.32 million), 7.76 million ENA ($4.62 million), and about 38.86 billion PEPE for $414,700. In a social post, he hinted at the bearish atmosphere surrounding the crypto market.
Hayes anticipates that the market will react to Trump’s tariffs which take effect soon, compounded by poor U.S. jobs figures. This has led to a prediction that Bitcoin could hit $100K, while Ether might approach $3,000 again.
Quote: “Y? US Tariff bill coming due in 3q … at least the market believes that after NFP print. No major economy is creating enough credit quickly enough to boost nominal GDP.” — Arthur Hayes.
Currently, as represented by the CoinDesk 20 index, the crypto market has decreased significantly in value, with Bitcoin trading at $113,500 and Ether at $3,500 as hopes for monetary easing fade. The support for rate cuts surged post a labor market that shows signs of instability.
In light of growing U.S.-Russia tensions, market instability continues as former Russian President Dmitry Medvedev warns the U.S. over military activities.
In contrast to recent declines, Hayes remains optimistic about the long-term trajectory of Bitcoin, previously setting a year-end target of $250,000, alongside a $10,000 projection for Ether.
