Bitcoin at $70K, Ethereum at $4K: Arthur Hayes Predicts When Altcoin Season Will Begin
August 14 2024 - 2:30AM
NEWSBTC
As historically proven, the start of an altcoin season, or
‘altseason,’ a period marked by the strong performance of
alternative cryptocurrencies relative to Bitcoin, often begins
following a significant increase in BTC’s price. This phenomenon
has been elaborated recently by Arthur Hayes, the co-founder of
BitMEX and Chief Investment Officer at Maelstrom Fund, who has now
shared the specific time when the alt season for this cycle could
begin. Related Reading: Is Now the Time to Buy Bitcoin? Top
Analysts Predict $150K Surge On The Horizon Bitcoin And Ethereum:
Key Price Targets To Kickstart Altcoin Season In Hayes’ latest
substack blog post “Water, Water, Every Where,” the BitMEX
co-founder suggests that certain key price marks for Bitcoin and
Ethereum hold the key to altcoins commencing their next major
rally. Hayes emphasizes that for altcoins to embark on a bullish
trend, Bitcoin and Ethereum must surpass significant
psychological barriers. According to the BitMEX co-founder, Bitcoin
must break above $70,000, and Ethereum must exceed $4,000 to set
the stage for a broader altcoin rally. These levels are seen as
crucial for restoring investor confidence and enabling a flow of
capital into smaller-cap coins. Hayes particularly noted: Alt szn
will return only after Bitcoin and Ether decidedly break through
$70,000 and $4,000, respectively. Solana will also climb over $250,
but the crypto market-wide wealth effect of a Solana pump is
nowhere near as potent as with Bitcoin and Ether, given the
relative market caps. The combination of a dollar
liquidity-inspired Bitcoin and Ether rally into year-end will
create a strong foundation for the return of a sexy shitcoin
soiree. The Potential Catalysts In addition to his alt season
start-off forecast, the BitMEX co-founder disclosed some potential
catalysts that could play a major role in these upcoming market
rallies. Hayes connected these imminent market movements to
macroeconomic factors, specifically the issuance of US Treasury
bills (T-bills). He argues that these could introduce new liquidity
into the crypto markets, propelling Bitcoin towards the $100,000
mark within this cycle. This anticipated flow of funds is expected
to benefit Bitcoin and have a significant positive impact on
Ethereum and, by extension, the broader altcoin market. Related
Reading: Ethereum Price Gains Strength, Outpaces Bitcoin With An 8%
Surge Hayes also commented on the upcoming US election and the
likely impact on the crypto market. Referring to it as “a coin
toss,” the BitMEX co-founder said that with the election in early
November and Yellen being at “peak manipulation in October, there
will be no better time for liquidity this year.” He added:
Therefore, I shall sell into strength. I will not liquidate my
entire crypto portfolio but take profits in my more speculative
momentum trades. At the end of the note, the BitMEX co-founder
touched on the US debts and reiterated his $1 million prediction on
Bitcoin, noting: Once the US debt ceiling charade is over,
liquidity will gush from the Treasury and possibly the Fed to get
markets back on track. Then, the bull market will begin for realz.
$1 million Bitcoin is still my base case. Featured image created
with DALL-E, Chart from TradingView
Flow (COIN:FLOWUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Flow (COIN:FLOWUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024