A remarkable shift has occurred in the cryptocurrency market as Arthur Hayes, a prominent figure and co-founder of a major exchange, has initiated substantial divestments from several key altcoins through his family office fund, Maelstrom. This move, taking place in mid-2025, marks a significant departure from his previously influential stance within the crypto space. The sell-off particularly includes a large volume of Ethena (ENA) tokens, with approximately 7.76 million units sold for around $4.62 million on August 2, 2025, triggering notable price declines. These actions have reverberated through the market, influencing sentiment and sparking increased volatility among affected altcoins.
Hayes’ decision to reduce exposure to certain altcoins appears deeply rooted in broader macroeconomic concerns, particularly the escalating risks associated with U.S. debt levels and instability within the bond market. These factors have prompted a reassessment of risk assets, leading to a strategy focused on capitalizing on short-term gains before anticipated shifts in market dynamics. His approach involves “taking chips off the table” amid fears of inflationary pressures and currency devaluation caused by ongoing money printing. Consequently, Hayes has favored reallocating capital toward Bitcoin and gold, viewing them as more reliable hedges against fiat currency weaknesses during uncertain economic conditions. The ongoing increase in global dollar liquidity due to U.S. government borrowing supports his bullish stance on Bitcoin as a store of value amid monetary expansion (liquidity expansion). This aligns with the understanding that Bitcoin’s value correlates strongly with the growth of global fiat liquidity and the debasement of fiat currencies (fiat currency debasement).
Hayes shifts from altcoins to Bitcoin and gold, hedging against inflation and fiat currency risks amid economic uncertainty
While Hayes has divested from altcoins linked to decentralized finance and newer tokens, he maintains a nuanced perspective regarding Ethereum. Despite characterizing Ethereum as “hated,” he regards it as a resilient Layer 1 blockchain with strong potential for recovery and outperformance in future market cycles. This contrasts with his broader caution toward less established or volatile altcoins, where liquidity and risk management take precedence. Bitcoin remains central to his portfolio, with bold price targets projected through 2028, reflecting confidence in its long-term store of value status.
The market impact of Hayes’ sell-offs has been immediate, as evidenced by sharp price corrections in targeted altcoins like Ethena, which fell roughly 11% following the public tracking of his transactions. Investor reactions underscore the influence of Hayes’ reputation and early involvement in the crypto ecosystem, often amplifying short-term fluctuations. However, the enduring effects on altcoin valuations will depend heavily on subsequent macroeconomic developments and the evolving cryptocurrency landscape, warranting careful observation by market participants.
