Why Arthur Hayes is Aggressively Dumping His Ethereum (ETH)?

Arthur Hayes, co-founder of BitMEX, continued to withdraw ETH from his wallet and transfer it to exchanges in December. These actions have led investors to believe he is selling ETH. The move may be part of a portfolio rebalancing plan he previously shared.

This activity comes as his portfolio shows notable changes. It now holds more stablecoins and significantly less ETH.

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Arthur Hayes May Have Sold More Than 1,800 ETH in the Past Week

A recent report from Lookonchain, an account that tracks notable on-chain activity, revealed that Hayes sold an additional 682 ETH on Binance. The transaction was valued at approximately $2 million. He redirected the capital into DeFi tokens.

Earlier, BeInCrypto reported that Hayes transferred 508.6 ETH, valued at around $1.5 million, to Galaxy Digital.

In total, Hayes sold approximately 1,871 ETH over the past week. The estimated value of these transactions reached $5.53 million. He used the proceeds to purchase DeFi tokens, including ENA, PENDLE, and ETHFI.

Data shows that these tokens have declined by 80–90% so far this year. Hayes appears to be taking advantage of low prices. He expects these tokens to deliver future returns. Previously, Hayes publicly shared his strategy on his personal X account.

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However, a closer examination of his portfolio structure using Arkham data reveals a significant shift.

First, the amount of ETH held in his wallet has steadily declined from 16,000 ETH in 2022. Since November, his ETH holdings have fallen from 6,500 ETH to 3,160 ETH. This indicates sales of more than 3,440 ETH during that period.

Meanwhile, out of a total portfolio valued at $74 million, nearly $48 million is held in USDC. Stablecoins now account for more than 60% of the portfolio’s total value.

Arkham data shows that Hayes increased his USDC holdings from $1 million to nearly $48 million since mid-November. This period also coincided with market sentiment remaining in fear to extreme fear territory.

Typically, rising stablecoin holdings signal either readiness to buy dips or a cautious stance.

Previously, Arthur Hayes predicted that Ethereum could reach $20,000. He stated that holding 50 ETH could make someone a millionaire by the next US presidential election.