Hayes Sells Millions in Digital Assets as U.S. Tariff Risks Trigger Market Pullback

Arthur Hayes Exits Key Crypto Positions, Citing Bearish Risks From U.S. Tariffs and Economic Weakness

BitMEX co-founder Arthur Hayes has liquidated over $13 million in crypto holdings amid rising concerns about the impact of new U.S. tariffs and deteriorating macroeconomic conditions. His latest moves reflect a cautious near-term outlook, even as he maintains long-term bullish targets for bitcoin and ether.

Blockchain data from Arkham Intelligence shows that an address linked to Hayes recently sold significant amounts of ether (ETH), Ethena (ENA), and meme token PEPE. Proceeds were rotated into USDC, bringing the stablecoin’s share to more than 80% of the wallet’s $27.9 million total.

According to the data:

2,373 ETH were sold for approximately $8.32 million
7.76 million ENA netted about $4.62 million
38.86 billion PEPE were liquidated for $414,700

Hayes appeared to confirm the moves in a post on X, warning that crypto markets could face further downside due to the economic fallout from former President Donald Trump’s latest tariff policy. Several tariffs went into effect on August 1, with additional rounds due on August 7, impacting major U.S. trade partners.

Hayes also pointed to Friday’s disappointing U.S. jobs report as another bearish signal, stating that no major economy is expanding credit fast enough to sustain nominal GDP growth. In this environment, he expects bitcoin to “test $100K” and ether to fall back toward $3,000 in the near term.

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

Despite this tactical shift, Hayes reiterated his bullish long-term thesis in prior commentary, maintaining price targets of $250,000 for bitcoin and $10,000 for ether by year-end.

Crypto Weakens on Macroeconomic Jitters

The broader crypto market has come under pressure over the past week. The CoinDesk 20 (CD20) index is down over 7.5%, with bitcoin slipping 3.9% to around $113,500. Ether has lost 6.5%, now trading near $3,500.

While expectations for a Federal Reserve rate cut cooled earlier in the week, soft labor market data released Friday reignited speculation. Traders on prediction platform Polymarket now assign a 70% probability to a September rate cut.

Markets are also grappling with heightened geopolitical tension. After Russia’s Dmitry Medvedev issued veiled threats in response to U.S. pressure over Ukraine, Trump announced that two U.S. nuclear submarines were being repositioned, escalating fears of further conflict.

Hayes’ reallocation into stablecoins suggests he’s positioning defensively amid volatility — but his conviction in crypto’s long-term trajectory remains intact.