Arthur Hayes, co-founder of BitMEX, said on Oct. 24 that he had exited his directional cryptocurrency positions, including Ethereum, Ethena’s ENA and Uniswap’s UNI, as he expects macroeconomic and geopolitical pressures to keep risk assets under strain. Wallet activity tracked by analyst 余烬 indicated that Hayes sold roughly $26 million in tokens that day, while subsequent on-chain data showed his stablecoin proceeds had climbed to 49.24 million USDC.
The sales mark a sharp change from Hayes’ public stance less than two weeks earlier. On Oct. 15, he wrote on X that he was long Bitcoin and Ethereum while discussing whether a potential AI-sector bubble could prompt a policy response. By Oct. 24, he said he had removed directional exposure and would remain on the sidelines until market risk conditions improved.
Ethereum accounted for the largest share of the reported liquidation. The tracked wallets sold 8,000 ETH at an average price of $2,369.18, producing proceeds of about $19 million. That transaction represented nearly three-quarters of the approximately $26 million in token sales identified for the day.
Ethereum sale dominates the reported portfolio exit
The remaining disposals were concentrated in liquid DeFi and infrastructure tokens. According to the wallet tracking cited by 余烬, Hayes sold:
- 14 million ENA for about $2.76 million at $0.191 each;
- 323,000 UNI for roughly $2.24 million at $6.85;
- 1.89 million ETHFI for about $1.23 million at $0.635;
- 547,000 AERO for approximately $400,000 at $0.716;
- 120,000 PENDLE for about $240,000 at $2; and
- 3 million ZAMA for roughly $210,000 at $0.0706.
Onchain Lens reported early on Oct. 26 that the wallets’ total USDC receipts had reached 49.24 million USDC after the latest transactions. USDC is a dollar-pegged stablecoin, so moving proceeds into the asset gives a trader exposure to digital-dollar liquidity without maintaining direct exposure to cryptocurrency price swings.
Hayes did not disclose the full composition of the portfolio before the sales, nor did he publish specific price levels that would bring him back into the market. His stated rationale focused on deteriorating risk conditions rather than a project-specific view of Ethereum, Ethena, Uniswap or the other tokens sold.
That distinction places the transactions closer to a macro-driven reduction in exposure than a targeted rejection of individual protocols. The sale of ETH alongside smaller DeFi positions indicates Hayes was cutting across different segments of the market rather than merely rotating from altcoins into Bitcoin.
A reversal from a previously bullish Ethereum view
Hayes has been one of the more outspoken public cryptocurrency figures on Ethereum’s long-term prospects. In a late-August interview, he discussed a potential ETH price range between $20,000 and $30,000, a forecast far above the roughly $2,369 average price recorded in the Oct. 24 wallet sales.
His latest move does not necessarily withdraw that longer-term view, but it does show a willingness to abandon a bullish position during periods he considers unfavorable for risk-taking. That approach can carry particular weight in cryptocurrency markets, where public commentary from prominent traders often draws attention even when their wallets represent only one participant’s strategy.
The timing also coincided with weaker market conditions. Bitcoin had fallen below $80,000 by the morning referenced in the report and had not recovered that level at the time. Ethereum was trading below its 50-day moving average near $2,546, a widely watched technical indicator that can act as resistance when an asset is trying to recover from a decline.
Daily Ethereum trading volume had also dropped 23.8% below its 30-day average, according to figures included in the source material. Lower volume does not determine price direction by itself, but it can make rebounds less convincing when buyers are unwilling to commit significant capital.
Cash position reflects caution across higher-risk tokens
The reported transactions also arrived amid signs that traders were favoring Bitcoin over smaller tokens. Bitcoin dominance, which measures Bitcoin’s share of total cryptocurrency market capitalization, had reached 59.46%, according to the supplied market data. A rising dominance figure often accompanies periods when capital becomes more selective and smaller-token liquidity thins.
Santiment said 169,770 tokens left public platforms on Oct. 23, its largest daily exchange outflow in more than four months, according to the source material. Exchange outflows can reflect transfers to self-custody, internal wallet movements or other non-trading activity, making them an incomplete measure of market sentiment. They offer a clearer signal when assessed alongside price, volume and derivatives activity.
For Hayes, the more immediate signal appears to be the conversion of holdings into USDC. The 49.24 million USDC total reported by Onchain Lens gives him readily deployable liquidity if conditions change, while avoiding the drawdowns associated with maintaining long exposure during a market decline.
Ethereum’s reported sale price also leaves a nearby market level in focus. The source material identified $2,350 as a support area and $2,290 as a lower level that could draw attention if that support fails. Hayes has not tied his own future trading decisions to either price. His public comments instead suggest that his re-entry would depend on a broader easing of the macroeconomic and geopolitical risks he cited when closing the portfolio.
Concerned by Hayes’ risk-off move? Learn how effective risk management strategies can protect your portfolio in volatile markets.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
