Time To Double Down on Solana and Altcoins, Says BitMEX Co-Founder
According to Arthur Hayes, the co-founder of BitMEX, now might be a good time for traders to focus on Solana (SOL) and other altcoins. This recommendation comes as Bitcoin struggles to regain its stability while altcoins like Ethereum post mixed results.
The Potential Outperformance of Altcoins
Hayes believes that it’s time to hop back on the Solana “train” as he expects altcoins to potentially outperform Bitcoin in the near future. His outlook is based on the possibility of both altcoins and Bitcoin rising in the coming sessions. Additionally, he warns about the potential downfall of a few major banks in the United States.
A Critical Position in the US Banking Landscape
Hayes’ comments coincide with a crucial moment in the US banking industry. Recently, NY Community Bancorp experienced a significant drop in stock price following an unexpected quarterly loss and dividend reduction. The bank’s expansion efforts have negatively impacted its balance sheet and regulatory capital requirements.
A Bank Crisis as a Boost for Bitcoin and Altcoins
While it remains uncertain if another banking crisis in the US would lead to a crypto rally, history has shown that Bitcoin tends to rally when major banks collapse. The collapse of Signature Bank in 2023 triggered a crypto rally that benefited Ethereum and Solana.
Solana’s Potential Recovery
Considering the shift in investor sentiment towards Solana, there is a possibility that SOL might regain its upward momentum. If this happens, the altcoin could break above $125, extending its gains from 2023. Currently, SOL is trading below $100 with resistance at $105.
Hot Take: Potential Opportunities in Solana and Altcoins Amidst Market Volatility
Despite the ongoing volatility in the crypto market, Arthur Hayes suggests that traders should consider doubling down on Solana and altcoins. With the potential for altcoins to outperform Bitcoin and the possibility of a banking crisis in the US, now could be a favorable time to invest in these assets. However, it’s important to closely monitor market conditions and make informed decisions based on individual risk tolerance and investment goals.
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