Bitcoin Must Reach $110,000 for Altseason, Says BitMEX Co-Founder

Arthur Hayes, the co-founder of BitMEX, has recently shared his insights on the cryptocurrency market, particularly focusing on the conditions that could trigger the much-anticipated altseason. According to Hayes, the real altseason, where alternative cryptocurrencies experience significant price surges, will commence once Bitcoin reaches a price of $110,000. This prediction is based on his analysis of the market dynamics and the potential impact of a spending spree by the U.S. Treasury, which he believes will drive up the price of Bitcoin.

Hayes' comments come at a time when investors and traders are eagerly awaiting the next altseason, a period characterized by the outperformance of altcoins relative to Bitcoin. However, Hayes cautions that this phase might take longer than many anticipate. He suggests that the current market conditions and the broader economic environment will play a crucial role in determining the timing of the altseason.

In a recent interview, Hayes elaborated on his views, stating that the U.S. Treasury's spending policies could act as a catalyst for Bitcoin's price surge. He believes that increased government spending will lead to inflation, which in turn will drive investors towards Bitcoin as a hedge against inflation. This influx of capital into Bitcoin could then create a ripple effect, boosting the prices of altcoins as well.

Hayes also touched upon the potential for Ethereum, often referred to as the 'hated' cryptocurrency, to make a comeback. He highlighted that Ethereum's technological advancements and its role in the decentralized finance (DeFi) ecosystem could position it for significant growth in the coming years. This perspective aligns with his broader view that the cryptocurrency market is poised for substantial gains, driven by both macroeconomic factors and technological innovations.

Hayes predicts that Bitcoin will go parabolic and reach these sky-high heights in the “summer or early third quarter.” A rotation of capital from Bitcoin into various altcoins will then follow, with Hayes foreseeing a potential upsurge. However, Hayes cautioned that this will be a very selective alt season. Unlike the meteoric altcoin surge of 2021, where almost all tokens pumped hard regardless of fundamentals, only a few coins will surge during the upcoming cycle.

In his view, a new narrative will spark attention and speculative trading in certain tokens, but he notes that “dino coins” are unlikely to recover. “A lot of those coins have high FDV, low float, no customers, no revenue, just some CEX listings, that went down 95%, I don’t really see why those should do well in the next cycle,” the pundit explained.

Hayes, who received a presidential pardon from President Donald Trump earlier this year, predicts a Bitcoin rocket to $200K in the next leg up and hit $250,000 by year-end. A $1 million Bitcoin price tag could be attained by 2028 as Trump leaves office, per the ex-BitMEX boss.

Regarding Ethereum versus Solana, Hayes believes the second-largest blockchain has more bullish prospects. The crypto OG reckons that Ether’s underlying fundamentals and ecosystem resilience make it a better bet than SOL in the coming months, despite its recent underwhelming price action and the heavy criticism it draws from skeptics. “I think that Ethereum could outperform Solana in this next sort of 18-24 months bull run,” he stated.

Hayes' insights provide a valuable perspective on the cryptocurrency market's future trajectory. His prediction that Bitcoin must reach $110,000 before the altseason begins underscores the importance of Bitcoin's price movements in shaping the broader cryptocurrency landscape. As investors and traders continue to monitor the market, Hayes' analysis serves as a reminder of the interconnected nature of the cryptocurrency ecosystem and the potential for significant gains in the altcoin sector.