As the United States presidential election approaches, Arthur Hayes, the founder of BitMEX, has identified Solana (SOL) as his preferred cryptocurrency for trading. In a recent interview on the Unchained YouTube channel, Hayes expressed confidence that Solana will outperform other significant crypto assets. He describes Solana as the “high-beta Bitcoin” for the election season, emphasizing its volatility and its sensitivity to Bitcoin’s price movements. This makes Solana an appealing choice in a market poised for potential sharp turns.
Why Hayes Prefers Solana Over Ethereum
Arthur Hayes has a clear preference for Solana due to its dynamic and fast-paced nature, which he finds more enticing compared to Ethereum. He describes Ethereum as “old, slow, and boring,” lacking the same potential for rapid movements and high liquidity that Solana offers. Hayes believes that as Bitcoin’s performance improves, Solana’s quick movements will amplify trading gains, whereas Ethereum does not present the same potential for swift returns in the current market environment.
Solana’s volatility is a significant factor for Hayes, offering more trading opportunities than Ethereum. Although he holds a long-term position in ETH, he views Solana as more suitable for short-term trades at present. As Ethereum’s momentum wanes in the current bull market, Solana is emerging as a leading force in the altcoin sector. According to Hayes, Solana’s strong performance indicates a shift in altcoin market dynamics, with the 200-day moving average cloud playing a pivotal role. Trading above this cloud is a bullish signal, and Hayes is monitoring closely for a close above $232 billion in the altcoin market cap (excluding the top 10). If this level is reached, he anticipates Solana could gain another 30%, marking it as a prime choice for the season.
The Election Impact on Crypto Rotation
Looking ahead to the upcoming election, Hayes predicts that Bitcoin will drive a wave of altcoin rotation, with Solana positioned to lead in performance. Rather than increasing his Bitcoin holdings, Hayes plans to trade Solana, expecting it to benefit from any bullish sentiment that may arise in the crypto markets due to election-induced volatility.
Will Solana Price Break Above $200?
Solana’s price is on a trajectory that could see it surpass $200 in November, bolstered by robust on-chain growth and a bullish breakout from a pennant pattern. After consolidating near the $200 mark over recent months, Solana has experienced a notable recovery, climbing from $120 to $183. Key support around $160, close to the 50-day Exponential Moving Average (EMA), could provide buyers with a solid foundation to push prices higher.
Moreover, Solana’s network is expanding rapidly, with new addresses soaring to 5.9 million in October, and Total Value Locked (TVL) increasing by 54% over six weeks. This surge indicates heightened network activity and growing demand. Should the support hold and momentum persist, Solana may achieve a breakout above $200 by the end of the month.
At the time of writing, Solana is trading at $169.51, showing a slight decrease, while Bitcoin and Ethereum are valued at $70,749 and $2,502 respectively.
