Bitcoin To Break $70K, ETH $4K, For Alteson Start – Arthur Hayes
In the altcoin sector, the market rally, also known as altseason, could be delayed until 2025, depending on the key price levels of the world's two largest cryptocurrencies.
Both Bitcoin (BTC) and Ether (ETH) must return to key psychological levels for the altcoin sector to begin its rally, said Arthur Hayes, co-founder of BitMEX and chief investment officer of the Maelstrom Fund.
Hayes wrote in an Aug. 12 research note:
“Alt szn returns after Bitcoin and Ether cross $70,000 and $4,000 respectively. […] Bitcoin and Ether's rally, fueled by dollar liquidity, joining later in the year will provide a strong foundation for a lust-inducing return of Shitcoin Soybean.
Bitcoin and Ether prices are recovering from last week's $510 billion crypto market selloff, which saw the two cryptocurrencies correct their February lows.
Bitcoin fell below $63,000, falling below a key post-halving trendline, but a retracement of the trend prior to the 2024 cutoff has seen Bitcoin return to $100,000 based on previous Bitcoin halving cycles.
Related: World's Largest Bitcoin Miner Announces $250M Raise to Buy More Bitcoin
The next stop of Bitcoin price is $100,000, says Hayes
The post-halving trend is consistent with Hayes' predictions, which expect Bitcoin to breach the $100,000 mark this cycle.
This could inject new liquidity into crypto markets, primarily through the issuance of US Treasury bills (T-bills), Hayes wrote:
“So we take Bad Gurl's word for it and know that $301bn in T-Bill payments will come out between now and the end of the year. If this relationship holds true, Bitcoin will quickly track the dump caused by the yen's strengthening. Bitcoin's next stop is $100,000.
However, Bitcoin is currently struggling to break above the $60,000 psychological mark, while Bitcoin exchange-traded fund (ETF) flows continue to slow.
The US-based space Bitcoin ETFs collected a total of $27.8 million in BTC on August 12, but in 2018 August 9 saw cumulative revenue worth more than $89 million, according to data from Farside Investors.
Related: Tech giants are losing momentum as AI advances disappoint investors.
Solana price to $250 during the next altcoin?
The Solana (SOL) token – currently the fifth largest cryptocurrency in the world – may rise to the $250 mark in the next altcoin season.
Bitcoin's break above the $70,000 psychological mark could invite further investment into Solana, Hayes said.
“Solana goes above $250, but the Solana pump is nowhere near as powerful as Bitcoin and Ether, given the relative market power of the crypto market-wide wealth effect.”
However, Solana's price is currently down 42% from a high of $259 reached nearly three years ago in November 2021.
Magazine: Ethereum Price Drops For Months As Bitcoin Rises: X Hall of Flame, Roman
