Arthur Hayes, co-founder of BitMEX, has shifted his previous negative stance on Ethereum and returned to the market by purchasing ETH after the coin surpassed $4,000. Hayes stated that his decision was determined by technical analysis, 'The charts indicate that prices will rise 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 happen within the next 3-4 years, not by the end of the year. Hayes believes this optimistic outlook is due to anticipated capital inflows from asset management companies to buy cryptocurrencies.
The Time of Trump's Presidency Creates a Positive Market Momentum
Hayes presents his optimistic argument about the presidency of Donald Trump, 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 the creation of wealth.
Investors believe that Trump's focus on showcasing success will promote policies favoring the assets he deems important, including cryptocurrencies. This political timing lays the foundation for Hayes's prolonged optimistic outlook on digital assets throughout the current administration.
Hayes specifically noted that when ETH surpasses its previous all-time high, it will create a 'positive feedback loop' with easier funding conditions for companies purchasing these assets.
Preferential Investment Portfolio Allocation: Ethereum Over Solana
When asked whether to choose Ethereum or Solana for the remainder of the cycle, Hayes said he prefers ETH, although he acknowledges that both have price appreciation potential. He noted the shift in market sentiment from 'everyone hates ETH' just two months ago to the current optimistic sentiment.
Hayes recognizes that Solana may offer higher returns but emphasizes Ethereum's larger market presence and significant capital inflow. This decision reflects his view that while SOL may outperform on a return basis, ETH provides better risk-adjusted returns when considering market positioning.
Previously, Haynes predicted that Ethereum would test the $3,000 level before reaching new highs, demonstrating flexibility in adjusting 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's shift indicates a technical breakthrough that could change institutional sentiment, especially when combined with favorable political and economic conditions expected to continue during the current presidency.
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