Arthur Hayes Moves Into Stablecoins, Warns of Short-Term Crypto Weakness Amid Tariff and Jobs Shock
Arthur Hayes, co-founder of crypto derivatives exchange BitMEX, has sold over $13 million in crypto assets as he prepares for what he calls a “bearish scenario” driven by deteriorating U.S. macro conditions and renewed trade tensions.
According to blockchain data from Arkham Intelligence, a wallet associated with Hayes liquidated significant amounts of ether (ETH), Ethena (ENA), and PEPE, reallocating the majority of funds into USDC. Stablecoins now make up over 80% of the $27.9 million held in the address.
The liquidation included:
- 2,373 ETH for roughly $8.32 million
- 7.76 million ENA for $4.62 million
- 38.86 billion PEPE for around $414,700
Hayes appeared to confirm the activity in a post on X, citing concerns over the economic impact of U.S. tariffs introduced by President Donald Trump, as well as the latest U.S. jobs report, which came in below expectations. Additional tariffs are set to take effect August 7.
“No major economy is creating enough credit to boost nominal GDP,” Hayes wrote. “$BTC tests $100K, $ETH tests $3K.”
Markets React to Economic and Political Instability
The CoinDesk 20 Index (CD20), which tracks the top digital assets, is down more than 7.5% over the past week as traders reassess expectations for a Federal Reserve rate cut in September. Bitcoin (BTC) fell 3.9% to $113,500, while Ether (ETH) dropped 6.5% to $3,500.
Although rate cut optimism briefly faded, weak U.S. labor data later revived expectations. Prediction markets like Polymarket now assign a 70% chance of a rate reduction next month.
Heightened geopolitical risk has further rattled sentiment. Following remarks from former Russian President Dmitry Medvedev, President Trump announced the redeployment of two U.S. nuclear submarines — a move that increased global uncertainty and contributed to Friday’s broader market sell-off.
Still Bullish Long Term
While Hayes is reducing exposure in the short term, he remains optimistic about crypto’s long-term trajectory. Last month, he reaffirmed his year-end price targets of $250,000 for bitcoin and $10,000 for ether.
His current repositioning into USDC appears tactical — a hedge against near-term volatility, rather than a reversal of conviction. Hayes is also scheduled to elaborate on his market outlook during a keynote at WebX Asia in Tokyo on August 25.
