Bitcoin Needs to Break $70K and Ethereum $4K to Trigger Altseason

August 14, 2024 12:00 AM AEST | By Team Kalkine Media

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Bitcoin Needs to Break $70K and Ethereum $4K to Trigger Altseason — Image source: Shutterstock

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The anticipated rally in the altcoin sector, often referred to as "altseason," might be postponed until 2025, depending on the performance of Bitcoin and Ether. According to Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom Fund, both Bitcoin and Ether need to surpass significant psychological price levels to trigger this altcoin surge.

In a research note dated August 12, Hayes indicated that for altseason to commence, [Bitcoin] must break through the $70,000 mark and Ether needs to exceed $4,000. Hayes noted, "Altseason will return only after Bitcoin and Ether decisively surpass these levels. A rally in Bitcoin and Ether, driven by increased liquidity, will lay the groundwork for a resurgence in altcoins."

Currently, Bitcoin and [Ether] are recovering from a recent market downturn that saw a $510 billion sell-off in the crypto sector, pushing the two largest cryptocurrencies down to their February lows. Bitcoin's price fell below a key growth trajectory but could potentially rebound to the $100,000 level if it recovers this trendline by the end of 2024, aligning with previous halving cycles.

Hayes also predicts that Bitcoin's price could reach $100,000, driven by the issuance of U.S. Treasury bills, which could infuse new liquidity into the crypto market. Hayes commented, "Based on the issuance of $301 billion in T-bills between now and the end of the year, Bitcoin could quickly recover from the recent downturn. The next target for Bitcoin is $100,000."

At present, Bitcoin struggles to surpass the $60,000 level, with inflows into Bitcoin exchange-traded funds stagnating. On August 12, U.S.-based spot Bitcoin ETFs accumulated $27.8 million worth of Bitcoin, compared to over $89 million in inflows on August 9.

Looking ahead, Hayes suggested that Solana, currently the fifth-largest cryptocurrency, could reach $250 during the next altcoin season. However, he noted that while Bitcoin's rise above $70,000 could stimulate investment in Solana, the impact on Solana's price will be less dramatic due to its smaller market capitalization relative to Bitcoin and Ether.

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