This is when the Altcoin season will happen, according to Arthur Hayes

Arthur Hayes, an American entrepreneur and co-founder of crypto derivatives platform BitMEX, has predicted that the altcoin season would come after bitcoin (BTC) and ether (ETH) break above $70,000 and $4,000, respectively.

In an essay titled “Water, Water, Everywhere,” Hayes asserted that the combination of a rally in BTC and ETH inspired by dollar liquidity toward the end of the year would create a strong foundation for a return “sexy shitcoin sairee”.

Alternative season to follow BTC Rally

According to Hayes, Solana (SOL) will also break above $250; however, the asset pump will not have a large effect on the crypto market compared to bitcoin and ether due to the wide gap in their market caps. Additionally, BTC and ETH now have “structural offers” in the form of entries into exchange-traded funds.

“While Bitcoin and Ether have corrected since April, they escaped the carnage experienced in the shitcoin markets. Alt szn will return only after Bitcoin and Ether decisively break above $70,000 and $4,000, respectively,” he said.

Hayes expects BTC to recover soon from the correction caused by the falling dollar and yen, to $100,000 during the next stage of the bull cycle, which will extend to all risk assets. The businessman believes the increase would come and be sustained by the US Treasury issuing at least $301 billion in Treasury bills between now and the end of the year.

Recent historical data cited by Hayes shows that BTC rises when the US government issues Treasury bills. Conversely, BTC has traded sideways or posted sharp declines whenever Treasuries have been netted out of the market. These market moves were seen before the dollar and yen fell from 162 to 142, triggering a widespread sell-off in risk assets.

“In any case, I expect crypto to break out of its sideways-down trajectory from September onwards. As such, I’ll be taking advantage of this late summer weakness in the Northern Hemisphere to load up on crypto risk,” he added.

Hayes keeps BTC prediction at $1M

Interestingly, Hayes intends to return to the sidelines after the US presidential election in November. He said he would “watch for chaos” and return to the market after the U.S. debt ceiling is raised in January or February.

After the US debt ceiling hike, the BitMEX co-founder expects liquidity from the Treasury to get markets back on track and trigger the main bull run, which will send bitcoin up to $1 trillion.

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