Bitcoin and Ethereum Surge Could Trigger a ‘Prominent Altcoin Event’ Before Election: Arthur Hayes

Bitcoin and Ethereum could trigger a surge in alternative cryptocurrencies if they surpass $70,000 and $4,000, respectively, leading to what Arthur Hayes refers to as a “sexy shitcoin soiree” in alts. Hayes, a Bitcoin billionaire and co-founder of BitMEX, shared his insights in a recent essay.

Before this potential altcoin rally, the markets must navigate the upcoming U.S. election, which Hayes describes as contentious. He shared his colorful views on Vice President Kamala Harris, calling her a “first-class political muppet” and highlighting her advantage over Donald Trump due to her not being an “octogenarian vegetable.”

In Hayes’s analysis, Harris may have a straightforward path to victory given the current political and economic volatility in the United States. He believes that Harris may benefit from the low bar set by her opponent.

Hayes predicts a shift in the crypto market as U.S. dollar liquidity is expected to drive digital assets out of their current sideways and downward trends. He points to U.S. Treasury Secretary Janet Yellen’s financial maneuvers as a key factor in this potential shift, anticipating a market transformation starting in September.

The billionaire suggests that the U.S. government will utilize all available tools to inject liquidity into the markets before the election, potentially influencing the election’s outcome. Hayes specifically mentions that Yellen’s actions in October will be pivotal for market liquidity.

While Hayes remains optimistic about Bitcoin’s long-term prospects, with a base case scenario of reaching a value of $1 million, he also warns that the anticipated alt season won’t return until Bitcoin and Ethereum breach significant price levels. He emphasized the importance of Bitcoin and Ether’s rally fueled by dollar liquidity in setting the stage for the altcoin surge.

Hayes also shared his expectations for Solana (SOL) to exceed $250 in value, reinforcing his positive outlook on the crypto market. Looking ahead, he foresees a significant bull market in the coming year, stating that the “2025 Sino-American crypto bull market shall be glorious.”

As the election approaches, Hayes advises caution and recommends investors to “sell into strength” in October, a period he describes as a time of “peak manipulation” for market liquidity. He suggests observing the market chaos from the sidelines and re-entering after the U.S. debt ceiling is raised.

In conclusion, Arthur Hayes’s insights provide a unique perspective on the potential impact of Bitcoin and Ethereum’s performance on the broader crypto market, highlighting the interconnectedness of various digital assets and the influence of external factors on their value.