BitMEX founder Arthur Hayes says that altcoins may finally see a boost once Bitcoin (BTC) breaks a certain price range.
In a new interview on Crypto Banter, Hayes, the founder of crypto investment firm Maelstrom, says that he’s expecting Bitcoin to continue dominating the crypto market for some time.
[adinserter block="1"]However, Hayes says once BTC soars well above the $100,000 level again, riskier crypto assets will most likely start to shine.
“We accelerated a bit after the recent Fed press conference where Powell announced the reduction of QT (quantitative tightening) and sort of teased QE (quantitative easing).
We accelerated a bit, and if the market continues to collapse a bit, we’ll probably accelerate even more in terms of deploying capital. Most of what we’re buying is Bitcoin, I think Bitcoin dominance – that is the percentage of Bitcoin in the whole cryptocurrency market – continues to rise, and then at some point, let’s say Bitcion’s at $110,000 or $120,000 or some level, then altcoins will start to get to fire, and we’ll rotate out of that and into some things that we really like.”
In the altcoin space, Hayes says he’s looking for Ethereum (ETH) to outperform Solana (SOL).
“I hold a lot of Ethereum, I think at some point, the Ethereum hate is going to change. Usually, the most hated asset is the best-performing asset in the next cycle and the most loved is the worst-performing.
It’s just mean reversion; it doesn’t necessarily mean that one is better than the other. But if I had to deploy a fresh dollar of capital today, I’d buy ETH rather than Solana just because ETH is more hated than Solana.
And I think the memecoin fad is going to be done for a while, not to say it’s going away, I think memecoins are going to be here to stay for a very long time, but a lot of retail people lost a lot of money, and they’re not going to be slinging stuff on Pump.fun and creating transaction fees for Solana as much as they used to.
So I think that narrative about Solana being the memecoin L1, that’s going to hurt its ability to really outpace other L1s in the cycle.”
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