BitMEX founder Arthur Hayes said that Donald Trump’s victory in the 2024 elections could have a big impact on the crypto market. Hayes stated that the market will initially feel the supportive effects of Trump, but then a sharp decline may occur. “Trump’s re-election will create optimism at first, but this may not last long,” said Hayes, adding that the market should monitor this period carefully.
Trump’s Inauguration and Market Expectations
News of Trump’s re-election in November created enthusiasm in the cryptocurrency market. Bitcoin $104,049.2reached its all-time high, exceeding 107 thousand dollars. This increase was based on the possibility that the United States could create Bitcoin reserves. However, despite this optimism, the market could not experience a permanent period.
The US Federal Reserve’s (Fed) announcement that it would make fewer interest rate cuts in 2025 extinguished investors’ hopes. Hayes stated that this decision could reduce Trump’s initial impact and the market could fluctuate. “The confirmation that the Fed will cut interest rates less than expected may limit Bitcoin’s price movements,” he said.
Hayes added that Trump’s ability to change digital asset laws may be very limited. The outcome of the mid-term elections could seriously affect Trump’s political influence. In this case, the market may witness a huge sales wave due to disappointment.
Bitcoin’s Long-Term Role and the European Factor
Hayes believes Bitcoin’s long-term future is promising. Increasing economic pressures from the European Union may cause investors to see Bitcoin as a ‘safe haven’. This could increase the value and demand of Bitcoin. Hayes drew attention to the importance of this change by saying, “Problems in the European economy may trigger investors to exit US assets and turn to Bitcoin.”
He stated that long-term dynamics in the market will be heavily influenced by American and European economic policies. Cryptocurrencies may stand out as a more attractive investment tool in times of economic uncertainty. “I can say that Bitcoin’s price may fluctuate depending on global conditions, but it will be the winner in the long run,” he shared his prediction.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
