- Trump’s limited time in office could trigger a crypto market dip in early 2025.
- Hayes predicts dollar devaluation via gold revaluation impacting global markets.
- Crypto market may dip short-term, but long-term growth remains optimistic for Bitcoin.
As Donald Trump prepares to return to office in January 2025, BitMEX founder Arthur Hayes shared his views on how this political shift may influence the cryptocurrency market. Hayes predicts that Trump’s economic policies could trigger significant price movements for digital assets, including a potential early-year dip.
According to Hayes, Trump has a limited window to enact policy changes before the 2026 midterm elections dominate legislative focus. This period will likely shape how global markets, including crypto, respond to Trump’s financial strategies.
This limited window will influence how Trump can address financial issues such as the nation’s growing debt and economic policies. Hayes warns that markets may acknowledge this barrier, leading to a correction, especially in sectors like crypto, which tend to react sharply to macroeconomic shifts.
Dollar Devaluation and Its Role in Market Movements
Hayes suggests that a weakening U.S. dollar could lead to a chain reaction across global markets. He expects Trump’s advisors, including Bessent, to pursue dollar devaluation through methods such as gold revaluation. By reducing the dollar’s value, the administration could achieve its goals without requiring international agreements.
Crypto Market Correction Possible in Early 2025
In the wake of these macroeconomic moves, Hayes believes that digital assets, particularly Bitcoin, could face a sharp sell-off in early 2025.
Read also: Consensys CEO: Trump’s Pro-Crypto Presidency to Reshape U.S. Market
While some market participants expect Trump’s return to office to result in immediate market growth, Hayes believes that the realization of the limited time Trump has to enforce changes will cause frustration among crypto investors, leading to a potential dip.
However, Hayes remains optimistic about the long-term prospects for Bitcoin and crypto, noting that the expected impact from these macroeconomic shifts could also fuel future market growth.
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