Cryptocurrency veteran and BitMEX founder Arthur Hayes has updated his outlook that altcoins may have their time to shine.
In a new essay, Hayes wrote that he expects the crypto market to respond favorably to the massive liquidity expected to be injected into the financial system by U.S. Treasury Secretary Janet Yellen’s issuance of Treasury bills.
Hayes said the new liquidity could lead to a surge in Bitcoin (BTC) and Ethereum (ETH), while setting the stage for an “alt season.”
“So, if we take Yellen at her word, there will be $301 billion in net T-bill issuance between now and the end of the year. If this relationship is true, Bitcoin will quickly recover its losses due to the strong yen. $100,000 is the next stop for Bitcoin.”
Hayes believes alt season could begin within the next few months if certain market conditions are met.
“Shitcoins are a high beta Bitcoin cryptocurrency. However, this cycle, Bitcoin and Ethereum are making structural bids in the form of net inflows into US-listed exchange traded funds (ETFs). Bitcoin and Ethereum have corrected since April, but they have escaped the carnage experienced in the shitcoin market. Alt season will only return after Bitcoin and Ethereum clearly break through $70,000 and $4,000 respectively. Solana will also cross $250, but given their relative market caps, the crypto market-wide wealth effect from Solana’s rise will not be as strong as Bitcoin and Ethereum’s.
The combination of dollar liquidity-inspired Bitcoin and Ethereum year-end rallies will create a strong foundation for the revival of sexy shitcoin soirees.”
Bitcoin was trading at $59,964 at press time, up slightly over the past 24 hours, while Ethereum was trading at $2,673 at press time, unchanged from the previous day.
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Featured Image: Shutterstock/Tithi Luadthong
