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Arthur Hayes warns Trump is interested in dumping Bitcoin prices
Crypto veteran and founder of BitMEX Arthur Hayes has ignited controversy by suggesting that U.S. political developments, including actions by President Trump, could trigger a significant downturn in Bitcoin prices.
Hayes warned that if Trump fails to pass his proposed budget—which includes higher spending and an increase in the debt ceiling—market sentiment may turn bearish, forcing investors to capitulate. He predicts that these conditions could push Bitcoin from its current levels to as low as $70 000 - $75 000.
Key takeaways
- Political Impact: Hayes links U.S. political decisions, including budget and debt issues, to potential Bitcoin price dumping.
- Hedge Fund Activity: Hedge funds holding BlackRock’s iShares (IBIT) Bitcoin ETF may sell if Bitcoin prices continue to fall, triggering further declines.
- Price Forecast: Hayes foresees Bitcoin possibly dropping to $70 000 - $75 000 amid these developments.
Political influence on Bitcoin
Hayes contends that the ongoing political uncertainty in the U.S. plays a critical role in shaping short-term market sentiment. He argues that if President Trump is unable to pass a budget that increases spending and raises the debt ceiling, market panic could ensue.
Such a scenario would prompt a sell-off in riskier assets like Bitcoin, as investors seek the safety of traditional, yield-bearing assets. This political risk, according to Hayes, is a significant factor that could force Bitcoin holders to liquidate their positions, intensifying downward pressure on the cryptocurrency.
Bitcoin price action. Source: The Daily Hodl
Hedge fund dynamics and market implications
Hayes further noted that many hedge funds that purchased BlackRock’s iShares (IBIT) spot Bitcoin ETF have taken strategic positions by going long on the ETF while shorting CME futures.
“Bitcoin goblin town incoming,” he warned, suggesting that if Bitcoin continues its decline, these funds will begin to unwind their positions, selling IBIT shares and buying back futures to lock in profits. This unwinding could accelerate the fall in Bitcoin’s price.
As political uncertainty and hedge fund strategies intersect, Hayes’ forecast serves as a cautionary note for Bitcoin investors. Market participants will be closely monitoring U.S. political developments and their impact on crypto markets, with the potential for significant price adjustments in the coming weeks.
Before that, we already wrote that Bitcoin price sees sharpest weekly dip since last July amid extreme fear.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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