Arthur Hayes Sells Off Crypto, Predicts Bitcoin Drop to $100K Amid Trump's Tariffs

Arthur Hayes, co-founder of the BitMEX platform, has sold over $13 million worth of digital assets, including Ethereum (ETH), Ethena (ENA), and Pepe (PEPE). This move comes as he announces a bearish scenario for the cryptocurrency market, attributing it to the impact of President Donald Trump's tariffs and weak U.S. economic data.

Data from Arkham Intelligence shows that Hayes sold millions of dollars worth of these cryptocurrencies and has since accumulated USDC, a stablecoin that now makes up over 80% of his linked $27.9 million portfolio. The address sold 2,373 ETH, valued at $8.32 million; 7.76 million ENA, worth $4.62 million; and 38.86 billion PEPE, for $414,700. In a post on X, Hayes seemed to confirm he operates the address and pointed to a bearish outlook for the crypto market.

Hayes' Warnings on Trump's Tariffs and Bearish Predictions

Hayes explained that markets would take a hit from the impact of President Trump's tariffs, some of which went into effect on August 1 and others on August 7, affecting key trading partners. This came in conjunction with a weaker-than-expected U.S. jobs report, with Hayes arguing that no major economy is expanding credit fast enough to boost nominal GDP. Against this backdrop, he predicted that Bitcoin would test "$100,000" while Ethereum would fall back to $3,000.

Meanwhile, the broader cryptocurrency market, as measured by the CoinDesk 20 (CD20) index, has lost over 7.5% of its value over the past week as hopes of interest rate cuts faded. Bitcoin has outperformed the wider market with a decline of 3.9%, and it currently sits at $113,500. Similarly, Ethereum saw a 6.5% drop during the same period and is now trading at $3,500. While hopes of rate cuts faded on Friday, they later rose in the session after the labor market showed signs of weakness. Traders on Polymarket now see a 70% chance of a rate cut in September.

Hayes also suggested that the recent market downturn was due to growing tensions between the U.S. and Russia. After former Russian President Dmitry Medvedev threatened the U.S. in response to an ultimatum for Moscow to agree to a ceasefire, Trump reportedly ordered two nuclear submarines to move to "appropriate areas."

Despite the sell-off, Hayes may remain a long-term optimist. In a post last month, he stated that his year-end price target for Bitcoin was $250,000, while he saw Ethereum rising to $10,000.