BitMEX founder Arthur Hayes is predicting a parabolic rally for altcoins, depending on the top two crypto assets by market cap.
Hayes says in a new blog post that if Bitcoin (BTC) and Ethereum (ETH) continue on an upward trend, altcoins will surge aggressively.
“If Bitcoin and Ethereum continue to rally, there will definitely be a shitcoin vertical that goes bananas over the next few months…
“The key to shitcoining is understanding they go up and down in waves. First the crypto reserve assets rally — that is, Bitcoin and Ethereum. The rally in these stalwarts eventually stalls, and then prices fall slightly. At the same time, the shitcoin complex stages an aggressive rally. Then shitcoins rediscover gravity, and interest shifts back to Bitcoin and Ethereum.
And this stair-stepping process continues until the secular bull market ends.”
Hayes says that despite missing Bitcoin’s 2022 low, he is now investing for a potential next leg up, which he believes will be triggered by increased market liquidity.
“In a similar vein, part of my portfolio missed the early innings of this recent rally of Bitcoin — which was also driven by expectations of forthcoming monetary easing — but that doesn’t mean I should be obstinate and refuse to participate in the next part of the rally, which will be driven by the flows out of Reverse Repo Agreements and the spending of the TGA [U.S. Treasury General Account].”
Bitcoin is trading for $23,135 at time of writing, up about 50% from the 2022 low of around $15,500.
Ethereum is worth $1,673 at time of writing, up by nearly 70% since the 2022 low of around $995.
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