Arthur Hayes Predicts When Altcoin Season Will Begin

Arthur Hayes, co-founder and former CEO of BitMEX, recently shared his insights on when the much-anticipated altcoin season might begin. Hayes suggests that the timing of this phase will be heavily influenced by the performance of Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies in the market.

In an August 12 blog post, Hayes discussed the current state of the cryptocurrency market and the broader U.S. financial environment. He identified key factors that could ignite the next altcoin season during this bullish cycle. According to Hayes, Bitcoin and Ethereum are currently experiencing consistent buying pressure, or "structural bids," mainly driven by inflows into U.S.-listed Exchange Traded Funds (ETFs).

Hayes believes that the altcoin season will likely start once Bitcoin and Ethereum hit new price peaks. Specifically, he suggests that if Bitcoin surpasses $70,000 and Ethereum exceeds $4,000, it will trigger a broader rally in altcoins. These thresholds are crucial as they would pave the way for other cryptocurrencies to follow their upward trend.

Hayes also highlighted Solana (SOL) as a potential standout during this period. He predicts that Solana could rise to $250, though he acknowledges that its impact might be overshadowed by the performance of Bitcoin and Ethereum due to Solana's smaller market capitalization. Nonetheless, Hayes remains optimistic about Solana's prospects, suggesting it could still benefit significantly from the overall market rally.

Hayes is generally positive about the future of cryptocurrencies during the anticipated altcoin season. He believes that a rally in Bitcoin and Ethereum, likely fueled by increased dollar liquidity, could establish a strong foundation for gains across other cryptocurrencies. This could lead to significant profits for investors in the altcoin market.

This optimistic outlook is echoed by other analysts. For example, Crypto Rover, a well-known analyst on X (formerly Twitter), pointed out that several utility-focused cryptocurrencies are already seeing price increases, possibly signaling the approach of altcoin season. Ali Martinez, another crypto analyst, recently noted on X that Polygon (MATIC) might experience significant growth during the altcoin season. Martinez suggests that Polygon could see explosive gains if the altcoin season materializes, though he also cautions that this prediction could be invalidated if Polygon's price drops below $0.3 on a weekly close.

In summary, Arthur Hayes predicts that the start of altcoin season hinges on Bitcoin and Ethereum reaching new highs. While Solana shows potential, it may not exert the same influence as Bitcoin and Ethereum. As the year progresses, the crypto community is keeping a close watch on market movements, looking for early signs that altcoin season is approaching.