Arthur Hayes predicts a large-scale collapse of the crypto market

Arthur Hayes, co-founder of BitMEX, warned of a possible recurrence of a financial disaster similar to Black Monday in 1987. His alarming post appeared shortly before the Asian markets opened: he drew attention to the fall in S&P 500 futures and the lack of clear signals from bitcoin over the weekend. This uncertainty, according to Hayes, only increased the risks to global markets.

Currently, the situation on the financial markets remains tense. For two days in a row, US stock indices showed a sharp decline after the announcement of new tariffs by the Donald Trump administration. Thus, on Thursday, the S&P 500 index fell by 4.8%, and on Friday it dropped by another 6%. The Dow Jones index lost 2,231 points, the worst daily drop since June 2020. The Nasdaq suffered the most — minus 12% in two days, which formally means entering a bear market.

Despite attempts by White House adviser Kevin Hassett to calm the situation by saying that the president «does not intend to crash the market,» analysts continue to sound the alarm. The theory that Trump is deliberately provoking a recession to force the Federal Reserve to cut the discount rate, weaken the dollar, and stimulate mortgage lending is gaining popularity among investors.

The situation on the crypto market is also unstable. Bitcoin BTC $77,213.36 Bitcoin -6.72% Market capitalization $1.53 trillion VOL. 24 hours $4.91 billion dropped below $ 80,000, Ethereum ETH $1,496.60 Bridged Ether (StarkGate) -15.14% Market capitalization $0.13 billion VOL. 24 hours $3.23 billion fell by more than 5%, crossing the $ 1,700 mark for the first time since August 2023. There is an active wave of liquidations, especially among holders of risky assets. Markets that have recently demonstrated resilience are now facing a large-scale correction.

According to financial commentators, further developments will depend on the actions of the White House. If the policy of tariff pressure is not adjusted, investors can expect an even deeper decline. Clearly, the financial markets are at a point of high tension, and any impulse — whether negative or positive — could have a significant impact in the coming days.