Arthur Hayes, the enigmatic co-founder of BitMEX, has made waves once again by offloading a substantial portion of his crypto holdings. On August 4, 2025, data from Arkham Intelligence revealed that Hayes sold over $13 million in cryptocurrencies, including ether (ETH), ethena (ENA), and pepe (PEPE), and has shifted gears towards accumulating USDC, a stablecoin that’s now a lion’s share of his portfolio. His move comes amid a bearish bet on the ripple effects of U.S. tariffs and a sluggish global economic outlook.
Hayes’ Strategic Shift
Arthur Hayes’ recent maneuvers have captivated market watchers. His crypto address, now largely comprised of USDC, underscores a strategic pivot amidst uncertain financial landscapes. Specifically, the address shed 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 candid post on X, Hayes seemed to confirm his association with the address, hinting at a broader bearish sentiment in the crypto space.
Here’s the catch—Hayes believes the markets are poised for turbulence, primarily due to the impact of tariffs introduced by President Donald Trump. These tariffs, some of which took effect on August 1, with others following on August 7, target key U.S. trading partners. Combined with a disappointing U.S. jobs report, Hayes posits that no major economy is currently expanding credit rapidly enough to boost nominal GDP. It’s a stark assessment that has certainly rattled the markets, as further explored in Bitcoin dips below $115K as Trump tariff order fails to comfort investors.
The Broader Market Reaction
The crypto market, as tracked by the CoinDesk 20 (CD20) index, has seen better days—losing more than 7.5% in the past week as hopes for a rate cut dwindled. Bitcoin, however, remains relatively resilient, dropping only 3.9% to $113,500, while ether is down 6.5%, now trading at $3,500. Although rate cut hopes initially dimmed on Friday, they took an unexpected turn later in the session as the labor market showed signs of weakening. This has led Polymarket traders to speculate on a 70% probability of a rate cut come September. For more on the market dynamics, see XRP Leads Market Gains, Bitcoin Nears $115K as Trump Tariffs Sour Bullish Crypto Mood.
Compounding the market’s woes are escalating tensions between the U.S. and Russia. Former Russian President Dmitry Medvedev’s threats, following an ultimatum on Moscow to agree to a cease-fire, prompted Trump to order two nuclear submarines to “appropriate regions.” It’s a geopolitical chess game that could have profound implications for global markets.
A Bullish Underbelly?
Despite the current sell-off, Hayes may not be entirely bearish. Just last month, he expressed bullishness with a year-end target of $250,000 for bitcoin and $10,000 for ether. A bold prediction, some might say. This duality—publicly bearish yet privately bullish—raises intriguing questions about his long-term strategy.
As we look ahead, the crypto landscape remains as unpredictable as ever. Will Hayes’ bearish bet pay off, or will his bullish projections prevail? And how will the intertwining of economic policies and geopolitical tensions shape the future of digital assets? These are the questions that keep the crypto community on its toes.
In the end, Hayes’ actions are a testament to the complex, often contradictory, nature of the crypto world. It’s a space where fortunes can change in the blink of an eye—or the stroke of a pen signing a new policy. As the world continues to grapple with economic uncertainties, the only certainty is that the crypto market will remain a rollercoaster ride. Buckle up.
Source
This article is based on: Arthur Hayes Dumps Millions in Crypto Amid Bearish Bet on U.S. Tariff Impact
Further Reading
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- Crypto Markets See Red as Solana, XRP, Dogecoin Extend Losses
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
