Ethereum News Today: Ethereum's $20K Hike Hinges on Trump's Monetary Moves

Arthur Hayes, co-founder of BitMEX and current head of Maelstrom, has made a bold prediction for Ethereum (ETH), suggesting the cryptocurrency could reach as high as $20,000 before the end of the current bull market cycle. His forecast, delivered during a recent interview with the Crypto Banter podcast, underscores his belief that the asset’s trajectory will be significantly influenced by macroeconomic factors tied to the anticipated monetary policies of the U.S. government under President Donald Trump. Hayes emphasized that a surge in quantitative easing—where new money is created to purchase financial assets—could fuel this upward movement in ETH’s price [1].

This prediction follows a recent shift in sentiment from Hayes, who had earlier in August sold over $8 million worth of ETH, anticipating a market correction due to global tensions and Trump’s potential trade policies. However, the price of ETH quickly reversed course, surging past $4,000 and prompting Hayes to repurchase a large portion of the cryptocurrency. By mid-August, he had added more than 1,700 ETH to his holdings, valued at over $8 million [2]. In his latest remarks, Hayes acknowledged that Ethereum’s chart suggested a bullish trend and that the asset had "a gap of air to the upside" once it convincingly broke through its all-time high [1].

Hayes also highlighted the role of institutional investment in Ethereum’s potential rise. Notably, BitMine Immersion Technologies and SharpLink Gaming—two of the largest ETH treasuries—hold over $10 billion in Ethereum. Additionally, Ethereum ETFs have seen record-breaking inflows, capturing more than 5% of the total ETH supply [1]. These developments, according to Hayes, make it easier for crypto-native companies to raise capital, especially as the price of Ethereum continues to trend higher.

The market has shown some alignment with Hayes’ forecast. Ethereum briefly hit $4,789 on Friday, surpassing its 2021 all-time high. The move was partly attributed to a more dovish tone from Federal Reserve Chair Jerome Powell, who indicated a potential rate cut during his speech at the Jackson Hole symposium. This signaled a broader acceptance of risk assets, including cryptocurrencies [1]. Meanwhile, Ethereum ETFs have continued to attract investor attention, with some data suggesting a shift in preference from Bitcoin ETFs to Ethereum-based products. SoSo Value reported that Ethereum ETFs saw $287.61 million in net inflows on August 21, while Bitcoin ETFs recorded a net outflow of nearly $194 million [3].

Despite the optimism, the Ethereum market has not been without volatility. Over the past few days, spot Ethereum ETFs have seen significant outflows, with some funds recording losses in the millions. For example, BlackRock’s iShares Ethereum Trust ETF (ETHA) saw $257.78 million in outflows on a single day. However, Ethereum’s price remains up 14.8% over the past month, despite a recent 7.4% decline over the past week [2]. These fluctuations highlight the ongoing tug-of-war between bullish fundamental factors and short-term market sentiment shifts.

Hayes also weighed in on the broader competition between Ethereum and Solana (SOL), noting that both chains are expected to rise, but Ethereum is positioned to outperform. He confirmed his preference for Ethereum over Solana, citing its superior fundamentals and growing institutional adoption [2]. This aligns with broader market trends, as Ethereum’s share of decentralized finance (DeFi) total value locked (TVL) remains above 50%, and on-chain activity—measured by transaction fees—has surged by 38% in the last seven days [6].

Source: [1] Why Arthur Hayes Expects Ethereum to Surge to $20,000 (https://finance.yahoo.com/news/why-arthur-hayes-expects-ethereum-210103605.html) [2] Arthur Hayes Sees $20K ETH Ahead, Why He's Backing Ethereum Over Solana (https://cryptopotato.com/arthur-hayes-sees-20k-eth-ahead-why-hes-backing-ethereum-over-solana/) [3] Ethereum could rally around $20K, predicts veteran analyst (https://www.thestreet.com/crypto/markets/crypto-analysts-predict-shocking-ethereum-rally) [4] Bitcoin, Ether ETFs post almost $1B outflows as prices slide (https://cointelegraph.com/news/crypto-funds-bleed-bitcoin-outflows-surge-5x-ether-outflows-double) [5] Spot Ether ETFs See $197M Outflows, Second-Largest Ever (https://cointelegraph.com/news/ether-etfs-197m-outflows-second-largest) [6] Bitcoin and Ethereum ETFs Experience Continued Outflows (https://forklog.com/en/bitcoin-and-ethereum-etfs-experience-continued-outflows/)