BitMEX founder Arthur Hayes says there will come a time this year when he will move capital out of the risk curve and into select altcoins.
In a new essay, Hayes say that the digital asset industry could experience a “disappointment” from incoming President Trump if he ultimately isn’t as pro-crypto as he campaigned, driving down market prices.
However, he says such a situation – if it occurs – could easily be offset by a fresh flood of new liquidity, likely from the Treasury Department and the Federal Reserve.
“Trump with his proposed pro-crypto and pro-business legislation could be covered by an extremely positive dollar liquidity environment, 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 phase of the first quarter and relax on the beach, at the [club]or at a ski resort in the Southern Hemisphere and wait for positive fiat liquidity conditions to reoccur in the third quarter.”
If the wave of liquidity comes as Hayes expects, he says his investment fund Maelstrom will take more risk in the crypto markets, branching out from the majors and building positions in ‘dogsh*t’ or riskier altcoin projects.
He mentions decentralized science (DeSci) as a sector that Maelstrom has already positioned itself in and will focus on when the time comes.
“As I fulfill my role as Chief Investment Officer at Maelstrom, I will encourage the risk takers at the fund to set the risk switch to DEGEN. A first step in that direction is our decision to delve into the fast-growing Decentralized Science shitcoin field. We like underrated dog poop and bought BIO; VITA; ATH; TO GROW; PSY; CRYO; NEURON…
If it turns out at a high level as I’ve described, I’ll cut the baseline and ride the 909 open hi-hat sometime in March. Of course anything can happen, but on balance I am optimistic.”
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