Arthur Hayes' Theories Come to Life: Altcoins Thrive as Bitcoin Dominance Declines

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Arthur Hayes' Theories Come to Life: Altcoins Thrive as Bitcoin Dominance Declines
Arthur Hayes' Theories Come to Life: Altcoins Thrive as Bitcoin Dominance Declines (Provided by Financial World)

According to Arthur Hayes, the founder of BitMex brokerage, the era of alternative cryptocurrencies (altcoins) might have arrived. This optimism stems from Ethereum reaching the milestone of $2,000 for the first time in the current year.

Shapell Upgrade Boosts Ethereum Price

The successful implementation of Shapell, one of the most significant events in the transition to proof-of-stake, enabled validators to claim their staked Ether.

This development initially raised concerns about a potential price drop due to the large volume of Ether that could be unlocked. However, security protocols prevented mass unlocking, leading to an increase in the price of Ethereum, which even crossed $2,100, the highest price in a year.

Hayes' Altcoin Theories

Hayes, who has spoken about the rise of altcoins before, stated in February of this year, “If Bitcoin and Ether continue to rise, a shitcoin vertical is sure to go wild in the coming months”.

He also noted that strong cryptocurrencies usually grow after Bitcoin, and after the bullish period ends, traders flock to smaller cryptocurrencies, resulting in the so-called “altcoin season”. Ethereum, with the largest ecosystem of tokens, is currently trading above $2,000, while Bitcoin experienced a slight 3% drop and is trading below $30,000 at the start of the week.

One of Hayes' followers suggested Solana (SOL), a cryptocurrency that he initially deemed worthless but later agreed would be a good investment in December. Since then, SOL has increased by 158%.

Decline in Bitcoin's Dominance

Another indication of the arrival of the altcoin season, as Hayes theorizes, is the decline in Bitcoin's dominance in recent days.

Despite Bitcoin's market capitalization reaching nearly $600 billion, it currently accounts for only 45.7% of the total crypto market, according to CoinMarketCap data. This percentage was 47.5% before Ethereum launched the Shapell upgrade.

An Eye on Bitcoin

While some traders remain fixated on Bitcoin, analysts are closely watching its movements. Peter Brandt believes that BTC has the potential to reach $40,000, while Tone Vays published an analysis with three possible scenarios - bullish, neutral, and more pessimistic, where Bitcoin could fall to $26,500.

Whether it's Bitcoin, Ethereum, or a small shitcoin, every trader is seeking maximum profit after surviving a long bear market.