Hayes’ sales may reflect tactical repositioning rather than bearish sentiment.
BitMEX co-founder Arthur Hayes has moved to liquidate over $13.35 million in digital assets during the latest market downturn. This surprise move included massive sell-offs in Ethereum, PEPE, and ENA tokens.
Arthur Hayes Sells Amid Broad Market Volatilty
Lookonchain data highlighted that BitMEX’s Arthur Hayes has sold about $13.35 million worth of crypto assets in his portfolio. The co-founder sold about 2,373 ETH worth $8.32 million, 7.76 million ENA valued at $4.62 million, and 38.86 billion PEPE tokens totaling around $414,700.
The market drop followed a 24-hour drop in the price of Bitcoin to as low as $112,731. Interestingly, according to Julio Moreno, Head of Research at CryptoQuant, Bitcoin is going through its third big wave of profit-taking in the current bull cycle. This stage often signals a market correction and typically comes before the next upward trend.
Notably, Arthur Hayes had cautioned traders about impending volatility and advised them not to be alarmed by policy changes such as the Trump tariffs. Hayes’ recent offload indicates a cautious realignment, despite earlier predictions of a “monster altseason.”
In addition, spot Bitcoin ETFs faced their second-largest one-day outflow ever, with a significant $812 million pulled out. The largest withdrawal came from Fidelity’s FBTC, which lost $331 million. Spot Ethereum ETFs also saw notable net outflows, suggesting that investors are hesitant to invest in cryptocurrency assets.
The White House’s recently announced tariffs on more than 60 nations are scheduled to go into effect on August 7, which adds to the bearish signals. The Federal Reserve predicts that this could lead to higher inflation.
Hayes’ Trading Activity, Profit Bookings or Flip to Bearish?
It’s interesting to note that Hayes’s choice to sell significant amounts of PEPE and ETH runs counter to his previous optimistic projections. The co-founder of BitMEX had predicted that treasury tactics and growing institutional demand would eventually propel ETH to $10,000. He simultaneously positioned himself as an outspoken advocate for altcoins and forecasted their rapid expansion.
However, Hayes’s decision to sell off sizable holdings might be more of a tactical move than a clear indication of a bearish turn. Just a few weeks ago, he bought about $1.5 million in ENA tokens (Ethena) when prices were low, showing he is still taking strategic risks in new projects.
Even though ETH and PEPE have faced heavy selling, Hayes’ strategy may still match his long-term view of crypto growth. By reducing his investment during a selloff, the former BitMEX chief could be getting ready to reinvest when the market calms down.
This approach matches Hayes’s habit of buying tokens like ENA at good prices while stepping back from assets that are facing short-term challenges. Right now, the BitMEX co-founder seems to be playing it safe, lowering his investment in ETH and PEPE while watching for future chances.
