U.Today

Arthur Hayes, cofounder of BitMex, shares insights on the future of the crypto market in his essay “Water, Water, Everywhere.” He predicts that the altcoin rally will commence once Bitcoin (BTC) and Ethereum (ETH) achieve specific price milestones.

Hayes observes that current market conditions are primed for significant changes. Notably, he highlights a correlation between decreased funds in the reverse repurchase agreement (RRP) market and Bitcoin’s price increase. As more capital enters from the RRP, he believes asset prices, including cryptocurrencies, will rise.

Feeling optimistic about Bitcoin, Hayes anticipates it could reach $100,000 shortly, with a long-term possibility of hitting $1,000,000. He intends to leverage current market weaknesses this summer, expecting movement away from sideways trends by September.

When is altcoin season?

According to Hayes, an extensive altcoin season will only take place after Bitcoin and Ethereum surpass the $70,000 and $4,000 thresholds, respectively. He sees potential for Solana to exceed $250 but considers its market impact minimal compared to BTC and ETH’s larger market caps.

Looking ahead, Hayes plans to divest his crypto holdings in October, projecting a peak in liquidity before the U.S. elections. However, he believes the real bull market will truly begin post-resolution of the U.S. debt ceiling in early 2025.

This article was originally published on U.Today