Arthur Hayes, the founder of BitMEX and crypto investment firm Maelstrom, has shared his perspective on the future of altcoins, suggesting that their resurgence might coincide with Bitcoin’s (BTC) next major price surge.
Speaking on Crypto Banter, Hayes indicated that Bitcoin would likely maintain its dominance in the crypto market for the foreseeable future.
According to Hayes, the turning point for altcoins could arrive once Bitcoin surpasses a significant price milestone, potentially exceeding $100,000. At that point, he believes that the increased value of BTC could prompt a rotation into riskier digital assets, leading to a boost for altcoins.
Hayes referenced recent economic signals, including comments from Federal Reserve Chairman Jerome Powell, which hinted at a possible shift from quantitative tightening (QT) to quantitative easing (QE). This development, Hayes noted, could accelerate the allocation of capital into cryptocurrencies, particularly Bitcoin, given its continued market dominance. Once Bitcoin reaches a price in the range of $110,000 to $120,000, he expects altcoins to gain traction, prompting a strategic shift from Bitcoin to other favored assets.
Within the altcoin sector, Hayes expressed a preference for Ethereum (ETH) over Solana (SOL). He believes Ethereum’s current unpopularity could set the stage for strong performance in the next market cycle, contrasting with Solana’s reputation as a “memecoin Layer 1” network. In Hayes’ view, Solana’s association with memecoins could hinder its progress as retail investors, having experienced significant losses, are likely to be more cautious in the near term.
Hayes also speculated that while the memecoin trend is not entirely over, it may lose momentum for a while. This potential slowdown in speculative activity could limit Solana’s ability to outperform other Layer 1 blockchains, reinforcing his inclination to favor Ethereum as a longer-term investment.
Kosta Gushterov
Reporter at Coindoo
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Source: https://coindoo.com/bitcoin-dominance-to-wane-after-100k-leading-to-altcoin-boom-says-hayes/