As the U.S. presidential election approaches, anticipation is building not just in the political arena but also in the financial markets. Among the cryptocurrency enthusiasts turning their attention to this event is Arthur Hayes, the founder of BitMEX. Recently, Hayes has spotlighted Solana (SOL) as his preferred asset for trading, anticipating that it will outperform other major cryptocurrencies. In a recent interview on the Unchained YouTube channel, Hayes described Solana as the “high-beta Bitcoin” for the election season, emphasizing its volatility and responsiveness to Bitcoin’s movements. This dynamic quality makes Solana an enticing option in a market potentially primed for substantial shifts.
Why Hayes Prefers Solana Over Ethereum
Arthur Hayes has made a compelling case for Solana over Ethereum, citing Solana’s strong “mind share” and dynamic market presence. Unlike Ethereum, which he labels as “old, slow, and boring,” Solana offers the fast-paced action and high liquidity that Hayes seeks. He suggests that Solana’s quick movements will amplify gains as Bitcoin performs well, whereas Ethereum lacks the same potential for rapid gains in this market context. While Hayes maintains a long-term position in Ethereum, he views Solana as superior for short-term trades at the moment.
Solana’s emergence as a leader in the altcoin space is particularly notable as Ethereum loses momentum in the current bull market. Hayes points to Solana’s robust performance as indicative of a shift in altcoin flows. The 200-day moving average cloud plays a pivotal role in this transition. Trading above this cloud is seen as bullish, and Hayes is closely monitoring a close above $232 billion in altcoin market cap (excluding the top 10) to signal further strength. Should this level be attained, Hayes expects Solana could gain an additional 30%, solidifying its position as a top pick for the season.
The Election Impact on Crypto Rotation
As the election season draws near, Hayes foresees Bitcoin as the catalyst for a wave of altcoin rotation, with Solana poised to lead in performance. Rather than increasing his Bitcoin holdings, Hayes plans to trade SOL, expecting it to capitalize on any bullish sentiment that could surge in the crypto markets due to election-driven volatility. This strategy underscores his confidence in Solana’s capacity to outperform during this period.
Will Solana’s Price Break Above $200?
The question on many investors’ minds is whether Solana’s price will break past the $200 mark in the coming months. Solana’s price trajectory shows promise, with potential for a rally past $200 in November. This expectation is fueled by robust on-chain growth and a bullish breakout from a pennant pattern. After consolidating near the $200 level over the past several months, Solana has demonstrated a significant recovery, climbing from $120 to $183 recently. Key support around $160, situated near the 50-day EMA, could provide a solid foundation for buyers to push the price higher.
Solana’s network is also expanding, with new addresses surging to 5.9 million in October and Total Value Locked (TVL) increasing by 54% within six weeks. This surge in network activity and demand is a positive indicator for Solana’s continued growth. If the support holds and momentum persists, Solana may well achieve a breakout above $200 by the end of the month.
At the time of writing, Solana is trading at $169.51, reflecting a slight dip, while Bitcoin and Ethereum stand at $70,749 and $2,502 respectively. The upcoming election season presents a unique opportunity for Solana to capitalize on market dynamics, and it remains a cryptocurrency to watch closely.
