Crypto veteran and BitMEX founder Arthur Hayes is updating his outlook on when altcoins could have their time to shine.
In a new essay, Hayes says that he expects the crypto market to respond positively to an anticipated massive injection of liquidity into the financial system from US Treasury Secretary Janet Yellen’s issuing US Treasury bills (T-bills).
Hayes says the new liquidity could cause Bitcoin (BTC) and Ethereum (ETH) to soar, while at the same time setting the stage for an “altseason.”
“Therefore, taking Bad Gurl Yellen’s word, we know that $301 billion of T-bills will be net issued between now and year-end. If this relationship holds true, Bitcoin will quickly retrace the dump caused by the yen strengthening. The next stop for Bitcoin is $100,000.”
Hayes believes that the altseason could take off within months if certain market conditions are met.
“Sh*tcoins are higher beta Bitcoin crypto plays. But during this cycle, Bitcoin and now Ether have structural bids in the form of net inflows into US-listed exchange-traded funds (ETF). While Bitcoin and Ether have corrected since April, they escaped the carnage experienced in the shitcoin markets. Altseason will return only after Bitcoin and Ether decidedly break through $70,000 and $4,000, respectively. Solana will also climb over $250, but the crypto market-wide wealth effect of a Solana pump is nowhere near as potent as with Bitcoin and Ether, given the relative market caps.
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.”
Bitcoin is trading for $59,964 at time of writing, up slightly in the last 24 hours. Meanwhile, Ethereum is trading for $2,673 at time of writing, flat on the day.