Arthur Hayes trims altcoins into multi-month lows – But doubles down on ZEC

In the dynamic and often unpredictable world of cryptocurrency, the strategic moves of prominent figures like Arthur Hayes, co-founder of BitMEX, frequently capture significant attention. Recently, Hayes has made headlines by substantially reducing his exposure to several altcoins amid a market downturn, a move that aligns with a broader de-risking trend. However, counter to this broad altcoin divestment, Hayes has simultaneously demonstrated a strong conviction in Zcash (ZEC), significantly increasing his holdings in the privacy-focused cryptocurrency.

Arthur Hayes Adjusts Altcoin Portfolio Amid Market Lows

Arthur Hayes recently undertook significant portfolio adjustments, offloading nearly $5 million worth of altcoins in a single day as the market experienced multi-month lows. This rapid reduction in exposure, according to data observed from on-chain analytics, was a clear move to cut risk during a period of considerable market stress.

His divestment included several prominent altcoins. Hayes reportedly sold approximately $2.48 million in Ethereum (ETH), followed by sales of $1.38 million in Ethena (ENA) and around $480,000 in Lido DAO (LDO). Further trimming his positions, he also reduced holdings in Aave (AAVE), Uniswap (UNI), and ether.fi, channeling several hundred thousand dollars worth of these tokens through OTC desks like FalconX and Wintermute. This pattern of transactions indicates a decisive unwind of exposure within hours, underscoring a cautious stance in a volatile market.

A Market Shaken by Significant Liquidations

Hayes’ decision to trim his altcoin positions coincided with a period of intense market volatility and widespread liquidations. Over a 24-hour span, more than 152,035 traders were liquidated, resulting in nearly $620 million in wiped-out positions. Bitcoin (BTC) accounted for the largest share of these liquidations, totaling $243.5 million, with Ethereum following at approximately $170 million. The market heatmap revealed pressure across various altcoins, including Solana (SOL), Ripple (XRP), and even ZEC. The largest single liquidation event involved a BTC-USD pair on Hyperliquid, amounting to $30.6 million. Such extensive liquidations signal a significant shift in market sentiment, prompting large holders like Hayes to adopt defensive strategies.

Doubling Down on Zcash (ZEC): A Privacy Play?

Despite his broader altcoin divestment, Arthur Hayes has conspicuously increased his investment in Zcash (ZEC). This move has sparked considerable discussion within the crypto community, particularly across platforms like X and Reddit. Hayes publicly affirmed his bullish stance on ZEC by posting a ZEC/BTC chart and stating he had “aped more” into the asset.

The ZEC/BTC trading pair has shown a steady climb, moving from approximately 0.0045 BTC to pushing past 0.0068 BTC, exhibiting a clear pattern of higher highs and higher lows, accompanied by stronger trading volume. This renewed interest in ZEC, especially from a prominent investor, appears to be driven by rising liquidity pressure and growing attention towards privacy coins. Hayes’ conviction suggests a belief in the long-term value and utility of Zcash, possibly viewing it as a safer haven or an undervalued asset in the current market climate.

Hayes’ Broader Crypto Market Perspective

Hayes’ recent portfolio adjustments come within the context of his broader outlook on the cryptocurrency market. Despite the current downturn, he has previously expressed a long-term bullish perspective, suggesting that the crypto bull run could extend well into 2026. His analysis often references historical Bitcoin cycles, noting that past peaks typically occurred in the fourth quarter following a halving event. He postulates that the current cycle could mirror this trend, potentially peaking in 2025 or even stretching into 2026, especially if global factors, such as increased government spending, continue to foster a risk-on environment in financial markets. This perspective suggests that while he is tactically de-risking from certain altcoins in the short term, his fundamental belief in the long-term growth trajectory of the crypto market remains intact, with specific assets like ZEC standing out in his strategy.

Conclusion

Arthur Hayes’ recent actions in the cryptocurrency market highlight a nuanced approach to navigating volatile conditions. His decision to trim altcoins into multi-month lows reflects a prudent de-risking strategy in response to significant market liquidations and widespread uncertainty. Simultaneously, his pronounced doubling down on Zcash (ZEC) signals a selective conviction in assets he believes hold particular value or utility, possibly anticipating shifts in market preferences towards privacy-focused cryptocurrencies. These strategic moves offer insights into how experienced investors adapt to market dynamics, balancing risk management with targeted high-conviction investments.