BitMEX founder Arthur Hayes says there will come a time this year when he will start moving capital out of the risk curve into select altcoins.
In a new essay, Hayes says that the digital asset industry may experience a “letdown” by incoming President Trump if he ultimately isn’t as pro-crypto as he campaigned, sending market prices down.
However, he says that such a situation – if it occurs – can easily be balanced out by a new flood of fresh liquidity, likely from the Treasury and Federal Reserve.
“Trump on his proposed pro-crypto and pro-business legislation can be covered by an extremely positive dollar liquidity environment, an increase of up to $612 billion in the first quarter. Right on schedule, just like almost every other year, it will be time to sell in the late stages of the first quarter and chill on the beach, at the [club], or on a ski resort in the Southern Hemisphere and wait for positive fiat liquidity conditions to re-emerge in the third quarter.”
If the wave of liquidity does come as Hayes expects, he says that his investment fund Maelstrom will be taking on more risk in crypto markets, branching out from the majors and building positions in “dogsh*t” or riskier altcoin projects.
He names decentralized science (DeSci) as one sector that Maelstrom has already positioned itself in and will double down on when the time comes.
“Fulfilling my role as the Chief Investment Officer at Maelstrom, I will encourage the risk-takers at the fund to turn the risk dial to DEGEN. A first step in that direction is our decision to ape into the burgeoning Decentralized Science shitcoin field. We love undervalued dogshit and purchased BIO; VITA; ATH; GROW; PSY; CRYO; NEURON…
If things pan out at a high level, as I described, I will cut the baseline and ride the 909 open hi-hat sometime in March. Of course, anything can happen, but on balance I am bullish.”
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