BitMEX Co-Founder Predicts Altcoin Collapse Amid Bitcoin's Rise

Bitcoin's dominance has been on the rise, surpassing the $81,000 mark and reaching a level above 61.3%. This indicates a continued concentration of capital in the leading cryptocurrency.

Arthur Hayes, co-founder of BitMEX, believes that most altcoins will depreciate as part of a healthy market cleansing process. He compares this to the historical rotation of companies in the S&P 500 index since 1929, where weaker companies are eventually replaced by stronger ones.

Hayes attributes Bitcoin's growth solely to global liquidity, rather than new regulations or adoption. In his view, the adoption of the CLARITY Act will not have a significant impact on the market. He expects the Federal Reserve and the US Treasury to continue injecting capital into the economy through bond purchases, which will push prices upward.

Darkfost, an analyst, notes signs of stabilization in the altcoin market, with about 12% of assets on Binance returning to their 200-day moving average. He also observes an increase in trading volumes, which he views as a signal of returning investor interest.