Altcoin Rally- Can Bitcoin Reach $100,000?
Altcoin Rally- The anticipated rally in the altcoin market, often referred to as altseason, may not materialize until 2025. This delay hinges on crucial price levels for Bitcoin and Ether, the two largest cryptocurrencies.
Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom Fund, suggests that for the altcoin sector to kick off its bullish trend, both Bitcoin and Ether must first reclaim significant psychological price levels. Specifically, Hayes points out that Bitcoin needs to surpass $70,000 and Ether needs to break through $4,000. In his August 12 research note, Hayes stated:
Altseason will only commence after Bitcoin and Ether decisively move beyond $70,000 and $4,000, respectively. A rally in Bitcoin and Ether driven by dollar liquidity towards the end of the year will set the stage for an exciting resurgence in altcoins.
Bitcoin’s Path to $100,000
Currently, Bitcoin is recovering from a significant sell-off that saw the cryptocurrency market lose $510 billion, pushing Bitcoin and Ether back to their February lows. Bitcoin had dipped below a critical post-halving growth trend when it fell under $63,000. However, if Bitcoin can recover this trendline before the end of 2024, it could be back on track to reach $100,000, in line with previous halving cycles. Hayes remains optimistic, forecasting that Bitcoin will hit $100,000 during this cycle, bolstered by the potential influx of liquidity from new U.S. Treasury bills (T-bills):
According to Treasury Secretary Janet Yellen, $301 billion worth of T-bills will be issued by year-end. If this projection holds, Bitcoin could quickly rebound from the recent dip caused by the yen’s strengthening. The next milestone for Bitcoin is $100,000.
However, Bitcoin is currently facing challenges in surpassing the $60,000 mark, partly due to stagnant inflows into Bitcoin exchange-traded funds (ETFs). On August 12, U.S.-based spot Bitcoin ETFs accumulated $27.8 million worth of Bitcoin, though this was a drop from the $89 million in inflows recorded on August 9, according to Farside Investors data.
Solana’s Potential in the Next Altcoin Season
Looking ahead, Solana’s SOL token, which is currently the fifth-largest cryptocurrency by market cap, could potentially surge to $250 during the next altcoin season. Despite this optimistic outlook, Solana’s price is currently 42% below its all-time high of $259 reached in November 2021. As the market evolves, Solana’s performance will be closely watched as a barometer for the broader altcoin sector’s recovery.
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