Maelstrom, the crypto investment fund founded by BitMEX co-founder Arthur Hayes, has sold roughly $22.28 million worth of digital assets, including ETH, ENA, UNI and several other altcoins. According to Hayes, the fund liquidated all of its directional trades over concerns about the economic and geopolitical environment.

The move comes at a difficult moment for the crypto market, which is contending with rising oil prices, inflation worries and uncertainty around interest rate cuts. Recent withdrawals from United States spot Bitcoin and Ethereum ETFs have added to the pressure, reinforcing concerns that prices could fall further before they recover.

Hayes argues the market needs another drop before a sustained rise is possible. That view marks a sharp reversal from the bullish outlook on Bitcoin and Ethereum he expressed only nine days earlier.

Hayes Announces Full Exit From Directional Trades

In a post on X on October 24, Hayes said the Maelstrom team had sold its entire directional book — the portion of a fund's portfolio that bets on prices moving in a chosen direction, as opposed to hedged or market-neutral positions — and taken profits on a range of cryptocurrencies, citing the unpredictable economic and geopolitical picture.

I dumped it all. The Maelstrom directional book, took profits on $ETH, $ENA, $UNI and other shitcoins. I think we gotta go down to go up. It looks a bit dicey out there in macro and geopolitical land. Going to sit on the sidelines and wait for the all clear signal … Brrrrr

— Arthur Hayes (@CryptoHayes) October 24, 2026

On-Chain Data Details the $22.28 Million Selloff

On-chain data compiled by blockchain analytics account Lookonchain shows the Maelstrom selloff totaled about $22.28 million in digital currencies. Ethereum accounted for the largest share of the total, with ENA and UNI the other two most significant positions involved. ENA is the token of the Ethena protocol, while UNI is the governance token of the decentralized exchange Uniswap.

The reported transactions included:

• 6,400 ETH, valued at approximately $15.2 million
• 14 million ENA, valued at approximately $2.76 million
• 323,000 UNI, valued at approximately $2.24 million

Other activity in the portfolio included 1.89 million ETHFI worth $1.23 million, 546,609 AERO priced at $398,000, 120,000 PENDLE valued at roughly $244,000, and 3 million ZAMA worth $214,000.

According to reports, some of the tokens were sold on crypto exchanges such as Binance. It is worth noting that token transfers to exchanges do not necessarily mean every token was sold through those platforms, and the values cited are approximations based on available on-chain data.

Arthur Hayes (@CryptoHayes) is dumping $22.28M worth of tokens! Including: 6,400 $ETH ($15.2M), 14M $ENA ($2.76M), 323,000 $UNI ($2.24M), 1.89M $ETHFI ($1.23M), 546,609 $AERO ($398K), 120,000 $PEND ($244K), 3M $ZAMA ($214K). pic.twitter.com/wV19JL4o6S

— Lookonchain (@lookonchain) October 24, 2026

Ethereum made up roughly two-thirds of the value of the reported selloff, while the remainder consisted largely of decentralized finance-related tokens, among others.

Hayes Says Prices May Need to Fall Further

In explaining the decision, Hayes said cryptocurrency prices will likely fall further before a recovery becomes possible.

"I think we gotta go down to go up," he said, adding that he will not move forward until there is an "all clear signal." Maelstrom appears to be taking a cautious approach until market conditions improve, and rather than immediately rotating the proceeds into other crypto assets, Hayes said he will wait before making his next move.

Notably, the selloff came just nine days after Hayes stated a positive perspective on Bitcoin and Ethereum, underscoring how quickly investment behavior can shift under sustained market uncertainty.

Even so, the Maelstrom selloff does not signal that a broader market downturn is imminent. Hayes's actions reflect one individual's attitude toward risk and should not be read as a forecast for the entire crypto market.

Bitcoin and Ethereum ETF Outflows Add to Selling Pressure

Institutional flows are another important element of the current market picture. According to a market briefing published October 24, U.S. spot Bitcoin ETFs recorded approximately $635.6 million in outflows on October 22, while spot Ethereum ETFs saw $110.6 million in withdrawals. Spot ETFs hold the underlying cryptocurrencies directly, rather than futures contracts.

The liquidation of more than $400 million worth of cryptocurrencies was also noted, suggesting that leveraged positions were being unwound.

ETF outflows may indicate reduced demand for market exposure through investment vehicles, though daily figures do not establish a longer-term trend. Similarly, liquidation totals represent forced position closings and do not indicate which direction prices will move next.

Together, these developments help explain why the Maelstrom selloff drew attention. Institutional investment outflows and the closing of leveraged positions can exert downward pressure on crypto prices. The market could stabilize again, however, if ETF money starts flowing back in, if economic data improves, or if geopolitical concerns ease — developments that investors will be watching closely.

What the Selloff Means for the Next Rally

The Maelstrom selloff reflects Arthur Hayes's prudent stance in the face of mounting economic and geopolitical threats. By closing his directional positions, Hayes is waiting for clearer market signals before committing to new investments.

The $22.28 million in sales, including $15.2 million in ETH, indicate a marked shift in his positioning. Still, the actions of a single fund do not mean the cryptocurrency market is headed lower.

ETF flows, inflation, oil prices and movements in Bitcoin and Ethereum may offer further hints. Weak demand could push prices down, while favorable trends could support a comeback. Any change in Hayes's own stance would likely be visible in his public posts and in Maelstrom's on-chain movements, which analytics accounts such as Lookonchain already track.

For now, Hayes remains on the sidelines. His view that prices must fall before further growth is his own estimation, not a predicted scenario. The episode demonstrates how quickly strategies can change as risks build, and when Hayes returns to the market will depend on how conditions evolve.

This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.