Altcoins Could See a Boost Once Bitcoin Breaks $100,000, Says BitMEX Founder Arthur Hayes
Arthur Hayes, the founder of BitMEX and crypto investment firm Maelstrom, believes that the altcoin market may experience a surge once Bitcoin surpasses the $100,000 mark. In a recent interview on Crypto Banter, Hayes shared his insights on the current state of the cryptocurrency market.
Bitcoin Dominance and Altcoin Potential
Hayes expressed his anticipation for Bitcoin to maintain its dominance in the market for the foreseeable future. However, he noted that once Bitcoin reaches a price level well above $100,000, riskier assets like altcoins are likely to shine. He highlighted that market conditions, such as the recent Federal Reserve announcements, could further accelerate this shift.
“We accelerated a bit after the recent Fed press conference where Powell announced the reduction of QT (quantitative tightening) and sort of teased QE (quantitative easing). If the market continues to collapse a bit, we’ll probably accelerate even more in terms of deploying capital. Most of what we’re buying is Bitcoin, but once Bitcoin reaches a certain level, altcoins will start to gain momentum, and we’ll adjust our investment strategy accordingly.”
Focus on Ethereum Over Solana
When it comes to altcoins, Hayes revealed that he sees potential in Ethereum outperforming Solana in the near future. He emphasized that Ethereum, despite facing criticism, could see a reversal in sentiment and become a top performer in the next market cycle.
“I hold a significant amount of Ethereum, and I believe that the negative sentiment surrounding it will eventually shift. Historically, assets that are most hated tend to perform the best in the following cycle. If I were to allocate new capital today, I would choose ETH over Solana due to Ethereum being undervalued compared to Solana.”
Hayes also discussed the impact of the recent memecoin trend on Solana’s performance, suggesting that the saturation of memecoins could hinder Solana’s ability to outpace other Layer 1 protocols in the market cycle.
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