The alt season will switch immediately after Bitcoin reaches $70,000 and Ethereum hits $4,000, according to Arthur Hayes. The former BitMEX CEO is also bullish on Solana, reaching above $250 before other altcoins blast off.
In a recent blog post, Hayes outlined what he sees in his crystal ball for crypto market movements over the coming months. He foresees a breakout from the current sideways trend to start in September, driven by increased U.S. dollar liquidity.
Hayes links the potential crypto rally to actions by US Treasury Secretary Janet Yellen, whom he has nicknamed “Bad Gurl Yellen.” He argues Yellen will engineer liquidity injections to boost asset prices ahead of the 2024 US election:
Bad Gurl Yellen will inject at least $301 billion and a maximum of $1.05 trillion between now and year-end. Wham! That is going to create a glorious bull market in all types of risk assets, including crypto, all in time for the election.
The controversial trader sees the draining of the Federal Reserve’s Reverse Repo Program (RRP) as a key driver of crypto price action. He notes a tight correlation between RRP outflows and Bitcoin’s recent climb from its lows.
Long-Term Bitcoin price target set at $1M
Hayes predicts Bitcoin will quickly retrace its recent drop caused by the yen strengthening, with “$100,000 the next stop.” Moreover, he plans to load up on crypto during late summer weakness, targeting peak liquidity in October. He recommends taking some profits then and parking capital in stablecoins to ride out potential election volatility.
Looking ahead, meanwhile, Hayes keeps his $1 million long-term price prediction for Bitcoin. A second liquidity surge at the end of January 2025, just after the U.S. debt ceiling increase, could ignite what he called the 2025 Sino-American crypto bull market.
While Hayes’s price call is quite bullish, investors should take such calls with a pinch of salt. The crypto market is extremely volatile and unpredictable, influenced by a complex mix of economic, regulatory, and technological factors.
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