Bitcoin Surges 8% to $118,500, Hayes Predicts Altcoin Season

Arthur Hayes, the former CEO of BitMEX, has recently shifted his stance on Bitcoin (BTC) from bearish to bullish, signaling the potential start of a significant altcoin season. In a recent post, Hayes highlighted Bitcoin's breakout to new all-time highs as a pivotal moment, despite his earlier concerns about the U.S. Treasury's efforts to rebuild its cash balance at the Fed, which he believed could drain liquidity from the market. However, the recent market rally has alleviated these fears, with Bitcoin surging past its previous all-time high on substantial trading volume.

Hayes' optimism extends to Ethereum (ETH), which he expects to outperform Bitcoin in the coming days. Historically, such momentum in Ethereum often precedes a broader rotation of capital into altcoins, suggesting that the long-awaited altcoin season may be imminent. Hayes' prediction aligns with the improving macroeconomic sentiment, particularly the market's expectation that President Trump will ease tariffs, which could bolster global trade and overall market performance.

In May, Hayes had predicted that Bitcoin would need to surpass the $110,000 mark for the altcoin season to commence, with the breakout anticipated around June or early Q3. With Bitcoin now trading at an all-time high of over $118,500, Hayes believes the next phase of the market cycle is underway. Long-term, he remains bullish on Bitcoin, forecasting it to reach around $250,000 by the end of the year and potentially hitting $1 million by the end of Trump's current term in 2028.

Hayes' forecast of an altcoin season is already materializing, with several altcoins such as SEI, SUI, and HBAR experiencing significant gains. While the Altcoin Season Index from CoinMarketCap still indicates Bitcoin dominance, sitting at 30/100, some analysts suggest that the tide is turning in favor of altcoins. This shift is evident in the market, where more than 98% of altcoins are outperforming Bitcoin in the ongoing rally.