Cryptocurrency Market Crashes But Arthur Hayes is Bullish on Bitcoin

The cryptocurrency market has suffered a severe downturn, losing $1.111 trillion in market capitalization since Donald Trump’s second term began on January 20, 2025. This significant drop is largely attributed to Trump’s trade policies, which have introduced increased economic uncertainty. However, amidst this turmoil, Arthur Hayes, the former CEO of BitMEX, remains steadfastly bullish on Bitcoin, actively buying it and predicting its continued dominance in the market.

• Market cap drops $1.111 trillion since Trump’s re-election
• Arthur Hayes stays bullish on Bitcoin
• Focus on established cryptocurrencies advised

Since Trump’s second term began, the total value of the cryptocurrency market has plummeted from $3.61 trillion to $2.52 trillion. This decline is primarily blamed on Trump’s aggressive trade policies, including tariffs, which have stirred global economic instability. The fear and greed index, a key indicator of investor sentiment, has dropped to a chilling 23, indicating extreme fear among crypto investors. For those unfamiliar, the fear and greed index measures investor sentiment on a scale of 0 to 100, where 0 indicates extreme fear and 100 indicates extreme greed.

Despite the market’s bearish conditions, Arthur Hayes, co-founder and former CEO of the cryptocurrency exchange BitMEX, remains a beacon of optimism. In a recent post on social media platform X (formerly known as Twitter), Hayes declared his ongoing commitment to Bitcoin, stating, “I have been actively buying Bitcoin throughout the day.” His confidence doesn’t end there; Hayes boldly predicts that Bitcoin could soon account for about 70% of the total cryptocurrency market capitalization.

According to Hayes, Bitcoin domination could account for about 70% of the total cryptocurrency market capitalization.

Hayes isn’t just seeing the glass half full; he’s got a plan. He advises investors to steer clear of what he refers to as “shitcoins” or less stable cryptocurrencies, and instead focus on established cryptocurrencies like Bitcoin and Ethereum. For those new to the term, “shitcoins” are cryptocurrencies that are less stable or less reputable. Currently, Bitcoin is trading at $76,861.04, down 7.2% in the last 24 hours, according to data from CoinGecko.

While the current market crash paints a grim picture, history offers a glimmer of hope. Previous downturns in 2013-2015, 2018, and 2022 were all followed by recoveries, driven by increased adoption, regulatory clarity, and innovations within the blockchain sector. For instance, the 2018 recovery was bolstered by clearer regulatory guidelines in some countries, which helped stabilize the market. This historical resilience suggests that the current market might also bounce back, spurred by similar factors.

Hayes also hinted at another potential driver for Bitcoin’s resurgence: the possibility of increased money printing due to current economic challenges. If governments resort to this strategy, it could lead to inflation fears, making Bitcoin an attractive hedge against such economic policies.

Despite the current downturn, the cryptocurrency market’s history of recovery and the potential for increased adoption and regulatory clarity offer a sense of cautious optimism. The market’s resilience, coupled with the bullish stance of influential figures like Arthur Hayes, suggests that the future might not be as bleak as the present seems.

However, it’s important to remain vigilant. The economic policies of Trump’s administration have not only shaken the crypto market but also highlighted the broader impact on global finance. Investors should keep an eye on these developments, balancing the potential for recovery with the risks posed by ongoing economic uncertainty.

To offer a counterpoint, some analysts like David Hernandez at 21Shares have noted that the crypto market’s reaction to Trump’s policies has been less severe than other industries, suggesting a relative resilience. This perspective adds a layer of complexity to the current market dynamics, reminding us that while the market is down, it may not be out for the count.

In the spirit of effective accelerationism, the current market crash can be seen as a catalyst for further innovation and adoption. As Marcin Kazmierczak, COO of RedStone, pointed out, protectionist policies could accelerate interest in decentralized alternatives over time. This shift aligns with the ethos of decentralization and privacy, core values of the crypto movement.

Key Takeaways and Questions

• What caused the recent cryptocurrency market crash?

  The crash was primarily triggered by Trump’s trade policies and increased economic uncertainty.

• How is the current market sentiment being measured?

  The fear and greed index, which has dropped to 23, measures market sentiment, indicating extreme fear among investors.

• What is Arthur Hayes’s stance on Bitcoin during the market downturn?

  Arthur Hayes remains bullish on Bitcoin, actively buying it and predicting it could account for 70% of the market cap.

• What advice does Arthur Hayes give to investors during this market crash?

  Hayes advises investors to focus on established cryptocurrencies like Bitcoin and Ethereum and avoid riskier altcoins.

• How have past cryptocurrency market crashes been followed by recoveries?

  Past crashes in 2013-2015, 2018, and 2022 were followed by recoveries driven by increased adoption, regulatory clarity, and innovations within the blockchain space.

• What factors are expected to drive the recovery of the cryptocurrency market this time?

  Increased adoption, regulatory clarity, and innovations within the blockchain sector are expected to drive the recovery.