If Bitcoin and Ethereum break above $70,000 and $4,000, respectively, it could set off a "sexy shitcoin soiree" in alts, writes Bitcoin billionaire Arthur Hayes in his new essay.
But first, markets will have to navigate the contentious U.S. election.
The BitMEX co-founder called Vice President Kamala Harris, the presumptive Democratic nominee, a "first-class political muppet." But he added that she has an advantage over Donald Trump simply because she "is not an octogenarian vegetable."
According to Hayes, this seemingly low bar might be all Harris needs to secure a victory against Trump—particularly given the volatile state of American politics and the economy.
His essay provides analysts of the broader crypto market. In it, he argues that the activation of U.S. dollar liquidity will soon push digital assets out of their current sideways and downward trajectory. And he anticipates that this shift will begin in September, fueled by U.S. Treasury Secretary Janet Yellen's financial maneuvers.
In Hayes's view, the U.S. government will use all available tools to inject liquidity into the markets ahead of the election, potentially influencing its outcome.
"Yellen will be at peak manipulation in October. There will be no better time for liquidity this year," Hayes stated, suggesting that Yellen will be using her influence to maximize market liquidity in October.
He believes that the resulting market rally could play a crucial role in boosting Harris's chances against Trump.
However, Hayes also warns that the highly anticipated "alt season" in the cryptocurrency market won't return until Bitcoin and Ethereum break through significant price thresholds—$70,000 and $4,000, respectively.
"The combination of a dollar liquidity-inspired Bitcoin and Ether rally into year-end will create a strong foundation for the return of a sexy shitcoin soiree," he wrote.
He also expects Solana (SOL) to climb above $250.
Maintaining an optimistic long-term outlook for Bitcoin, Hayes said $1 million value for Bitcoin was still his base case.
He also predicted a significant bull market heading into next year, adding: "The 2025 Sino-American crypto bull market shall be glorious."
Hayes advises caution around the time of the election, suggesting investors "sell into strength" in October, which he describes as a time of "peak manipulation" for market liquidity. He said he would "rather watch the chaos from the sidelines and step back into the markets AFTER the US debt ceiling is raised."
Edited by Stacy Elliott.
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