Ex-BitMEX CEO Hayes Unwinds Crypto Exposure Amid Tariff-Induced Market Gloom

Arthur Hayes Dumps $13M in Crypto, Cites Tariff Risks and Weak U.S. Data

Arthur Hayes, co-founder of BitMEX, has liquidated over $13 million worth of cryptocurrencies, shifting heavily into USDC as he anticipates renewed market stress tied to U.S. tariffs and softening economic data.

According to Arkham Intelligence, a wallet linked to Hayes sold:

• 2,373 ETH (~$8.32 million)
• 7.76 million ENA (~$4.62 million)
• 38.86 billion PEPE (~$414,700)

The proceeds were largely converted into USDC, which now comprises more than 80% of the wallet’s $27.9 million total.

In a post on X, Hayes confirmed the transactions and outlined his short-term bearish thesis. He pointed to the negative effects of President Trump’s new tariff policy—some of which took effect on August 1, with more to follow on August 7—as well as disappointing U.S. employment data. The July jobs report missed expectations and included major downward revisions to May and June.

“No major economy is creating enough credit fast enough to boost nominal GDP,” Hayes wrote. “So $BTC tests $100K, $ETH tests $3K.”

Crypto Market Feels the Pressure

The broader crypto market has declined sharply, with the CoinDesk 20 Index down 7.5% over the past week. Bitcoin (BTC) slipped 3.9% to around $113,500, while ether (ETH) fell 6.5% to about $3,500.

Although early-week sentiment suggested reduced odds of a September rate cut, Friday’s weak jobs data revived dovish expectations. Prediction market Polymarket now shows a 70% chance of a rate cut next month.

Meanwhile, geopolitical tensions are adding to market anxiety. After former Russian President Dmitry Medvedev issued threats over U.S. demands regarding Ukraine, Trump stated he had ordered the repositioning of two U.S. nuclear submarines—an unexpected move that further weighed on risk appetite.

Hayes Remains Long-Term Bull

Despite the defensive pivot, Hayes has not abandoned his long-term crypto thesis. In July, he reiterated bold year-end targets: $250,000 for bitcoin and $10,000 for ether. He’s expected to elaborate further during his keynote at WebX Asia in Tokyo on August 25.

Hayes’ shift into stablecoins reflects tactical caution rather than a reversal of conviction—positioning for near-term volatility while remaining optimistic on crypto’s broader trajectory.