The market rally in the altcoin sector, also known as altseason, could be delayed until 2025, depending on key price levels from the world’s two largest cryptocurrencies.
For the altcoin sector to start its bullish rally, both Bitcoin (BTC) and Ether (ETH) need to reclaim key psychological levels, according to Arthur Hayes, the co-founder of BitMEX and chief investment officer of Maelstrom Fund.
Hayes wrote in an Aug. 12 research note:
“Alt szn will return only after Bitcoin and Ether decidedly break through $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.”
Bitcoin and Ether prices are recovering from last week’s $510 billion crypto market sell-off, which saw the two cryptocurrencies correct to their February lows.
Bitcoin fell below a key post-halving growth trajectory when it dropped under $63,000, but recovering the trendline before the end of 2024 cut put Bitcoin back on track to the $100,000 mark, based on previous Bitcoin halving cycles.
BTC growth trajectory after four halving. Source: Ecoinmetrics
Related:World’s largest Bitcoin miner announces $250M raise to buy more Bitcoin
Bitcoin price’s next stop is $100,000, says Hayes
The post-halving growth trajectory is in line with Hayes’ predictions, who also expects Bitcoin to breach the $100,000 mark during this cycle.
This will mainly be catalyzed by the issuance of United States Treasury bills (T-bills) that could inject new liquidity into crypto markets, wrote Hayes:
“Therefore, taking Bad Gurl Yellen’s word, we know that $301bn 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.”
However, Bitcoin is currently struggling to rise above the $60,000 psychological mark as Bitcoin exchange-traded fund (ETF) inflows continue to stagnate.
The US-based spot Bitcoin ETFs amassed a cumulative $27.8 million worth of BTC on Aug. 12 but saw over $89 million worth of…
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