BitMEX co-founder Arthur Hayes has revealed that he divested from Solana (SOL) and increased his Ethereum (ETH) holdings, even in the face of Solana’s recent bullish momentum.
In a post on X (formerly Twitter), Hayes humorously shared that he made this decision based on divine inspiration received during meditation. According to Hayes, he received a message advising him to sell the “Sam coin” Proof-of-Stake (POS), a playful reference to Solana associated with its founder Sam Bankman-Fried, and to express his support for Ethereum and its co-founder, Vitalik Buterin. Hayes humorously stated, “So I sold $SOL and bought more $ETH.”
This lighthearted commentary highlights the dynamic and sometimes whimsical nature of decision-making in the cryptocurrency space, where influencers and market participants may attribute their actions to a variety of factors, including personal insights, market trends, or, as in this case, a bit of humor and divine inspiration.
He also forecasted the price of the leading altcoin to reach $5,000, representing a substantial increase of over 100% from its current value at $2,285. Many users in social media spaces found his predictions surprising, with some expressing skepticism that Ether’s price could surge to such levels within a few months.
Others suggested that the next phase for a bullish price movement might be around $2,400, especially as more institutional investors enter the market. Ethereum has had a robust year, experiencing a 93% surge year-to-date (YTD) after a decline of over 55% in 2022, where institutional investors’ sentiments had turned negative due to macroeconomic factors.
Institutional investors remain bullish on ETH
During Q1 and Q2 of 2023, Bitcoin (BTC) saw substantial institutional inflows, driven by the introduction of spot Exchange-Traded Commodity (ETC) applications. In contrast, Ethereum struggled to attract similar interest, despite the anticipation surrounding the launch of its futures Exchange-Traded Fund (ETF).
This is evident in the sluggish figures of institutional fund inflows for Ethereum during this period. While Bitcoin experienced significant institutional investment with weeks of consecutive gains, Ethereum’s institutional products saw outflows, even though overall market indicators were positive for the asset.
The total inflows to Bitcoin funds amounted to $1.6 billion, whereas Ethereum recorded inflows above $10 million with modest gains in Q4. Interestingly, Ethereum’s slower growth did not seem to impact the sentiment of wealth management firms towards the asset.
In a recent survey focused on the outlook for crypto assets in the upcoming months, wealthy managers expressed support for Ethereum, despite its recent slow growth.
According to these managers, most market indices indicate a positive trajectory for the altcoin. They attribute its sluggish recovery to the broader bear market conditions, during which Ethereum experienced a loss of over 55% of its value. Additionally, these managers pointed to staking on three platforms as a bullish narrative that could contribute to increased inflows in the coming months.
Solana marches on
Solana has earned the reputation of being an institutional favorite this year, witnessing consistent weekly inflows into its investment fund. In the last 24 hours, SOL has surged over 8%, surpassing Ripple (XRP) in terms of market capitalization.
Although it briefly surpassed Binance Coin (BNB) before settling into the 5th position, Solana has seen a remarkable 17% increase in the last seven days and an impressive 67% growth over the past month.
Currently priced at $91.7, Solana, often referred to as the “ETH killer,” still lags significantly behind Ethereum in terms of value, despite recording substantial network and community activity.
