Arthur Hayes, cofounder of BitMex, has shared his thoughts on what the future holds for the crypto market in his latest essay, "Water, Water, Everywhere." In particular, Hayes made a prediction for altcoins, saying their true rally will only get started once Bitcoin (BTC) and Ethereum (ETH) cross some major price milestones.
Current market conditions are setting the stage for a big shift, the crypto entrepreneur is convinced. He points out a clear link between a drop in funds in the reverse repurchase agreement (RRP) market and a rise in Bitcoin's price. As more money comes into the system from the RRP, asset prices, including cryptocurrencies, are set to rise.
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BTC to USD by CoinMarketCap
Hayes is still feeling good about Bitcoin's future and thinks it may reach $100,000 soon, and that it could even hit $1,000,000 down the road. He is planning to take advantage of the current market weakness during the summer, expecting the market to emerge from its sideways movement by September.
When is altcoin season?
A full-fledged altcoin season is yet to happen, though, and will happen only when Bitcoin and Ethereum break through the $70,000 and $4,000 levels, predicts Hayes. He also acknowledges the potential for Solana to surpass $250 but downplays its broader impact compared to BTC and ETH, citing their larger market caps.
Source: TradingView
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Looking ahead, Hayes plans to sell his crypto bags in October, when he expects liquidity to peak before the U.S. elections. It is not the end though, as his outlook suggests that the true bull market in cryptocurrencies will commence after the U.S. debt ceiling situation is resolved in early 2025.