Arthur Hayes Predicts Altcoin Rally as Ethereum Gains 50%

Former BitMEX CEO Arthur Hayes has shifted his stance on the crypto market, now predicting a significant altcoin rally. Previously, Hayes was cautious due to concerns about liquidity being taken out of the economy as the U.S. Treasury General Account (TGA) was being filled. However, recent developments have changed his outlook.

Hayes' bullish sentiment is fueled by Bitcoin's price reaching a new all-time high of 118,869, indicating a positive shift in the market. He believes that Ethereum will lead the next big rally, stating that altcoins typically follow when Ethereum gains strength. Hayes has long argued that altcoins perform exceptionally well when Ethereum picks up momentum.

Macroeconomic factors are also contributing to the bullish outlook. Hayes noted that markets anticipate Trump to adopt a more moderate tariff policy if re-elected, which could benefit international commerce and weaken the U.S. dollar. A falling dollar often drives investors to Bitcoin and other digital tokens as alternative stores of value, potentially boosting crypto prices.

Ethereum's fundamentals are also improving. The recent Pectra update increased ETH by almost 50% in a short period, demonstrating growing market confidence in Ethereum's future. Hayes is convinced that ETH is no longer just a tech network but an asset that could be rated as a treasury.

Large corporations are also recognizing Ethereum's value. GameSquare has announced a 100 million strategy focused on Ethereum, and SharpLink Gaming recently purchased an additional 10,000 ETH, bringing its portfolio to over 215,000 ETH. These movements indicate that institutions view Ethereum as having real value, which could drive significant capital into altcoins once ETH breaks out.

International debt and easy money policies are additional factors driving the altcoin rally. Governments spending more and maintaining low interest rates cause investors to seek higher-yielding assets, which altcoins, particularly Ethereum, can provide.

Evidence of an altcoin rally is already visible. XRP surged by 14% to reach a value of 2.82 dollars, Ethereum was up 8% and trading above $3,000, and memecoins like PEPE increased by 10 to 20% over 24 hours. Hayes believes that a massive altcoin season is approaching, potentially strengthened by strong Bitcoin momentum, Ethereum upgrades, and positive macro signals. Investors are closely watching to see if this "monster alt szn" materializes.