Arthur Hayes, co-founder of BitMEX, has reversed his previous pessimistic view on Ethereum and returned to the market by buying ETH after the coin surged past the $4,000 mark. Hayes stated that his decision was driven by technical analysis, "The chart indicates that prices will rise even higher."
In a recent interview, Hayes stated that Ethereum could reach $10,000 to $20,000 before the current cycle ends. However, he clarified that this could occur in the next 3-4 years, not by the end of the year. Hayes believes this bullish outlook is due to expected capital inflows from asset management firms raising funds to buy cryptocurrency.
The Timeline of Trump's Administration Boosts Market Optimism
Hayes presents his optimistic argument surrounding Donald Trump's presidency, predicting a "strong bull market" for financial assets related to Trump’s priorities from now until he leaves office. He emphasized that if Trump succeeds in the 2026 election, voter satisfaction will depend on economic development and wealth creation.
Investors believe that Trump's focus on showcasing success will drive policies supportive of the assets he considers important, including cryptocurrency. This political timeline lays the foundation for Hayes' prolonged optimistic outlook on digital assets throughout the current administration's term.
Hayes specifically noted that once ETH surpasses its all-time high, it will create "a positive feedback loop" with easier funding conditions for firms buying these assets.
Investment Portfolio Allocation Favors Ethereum Over Solana
When asked whether to choose Ethereum or Solana for the remainder of the cycle, Hayes expressed a preference for ETH, although he acknowledged that both have the potential to appreciate in value. He noted the shift in market sentiment from "everyone hates ETH" just two months ago to the current optimistic sentiment.
Hayes acknowledges that Solana may provide a higher percentage return but emphasizes Ethereum's larger market presence and substantial capital inflow. This decision reflects his view that while SOL may outperform in percentage terms, ETH offers a better risk-adjusted return considering its market position.
Previously, Haynes had predicted that Ethereum would test the $3,000 level before reaching new highs, demonstrating his flexibility in adjusting his views based on price volatility. The accumulation of $14.37 million in Ethereum-based tokens from August 10 to August 20 reinforced the confidence he expressed.
However, with ETH at a high, Hayes' change indicates that a technical breakthrough could shift institutional sentiment, especially when combined with favorable anticipated political and economic conditions likely to continue during the current presidency.
