Arthur Hayes said Solana is a high-beta Bitcoin during the US election.

By Crypto Gloom On Nov 2, 2024

Key Takeaways

Hayes suggests Solana could be a strong play amid election volatility and could potentially outperform Bitcoin in a bullish trend.
The Federal Reserve’s monetary policy is expected to have a greater impact on digital assets than the US election results.

Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, appeared on the Unchained podcast and favored Solana ahead of the US election, describing Solana as a “high-beta Bitcoin.”

With the election just days away, Hayes explained that Solana is a good investment because it is highly liquid and likely to surge if Bitcoin performs well.

Hayes also argued that it doesn’t matter who wins the US election in the long term, as the most important impact on digital assets will be the Federal Reserve’s decision on whether to cut interest rates on November 7.

“The bigger picture continues to focus on the Fed’s monetary policy rather than the immediate election results,” he explained.

Hayes also mentioned that he prefers Solana over ETH, explaining that Ethereum is currently ‘too slow’ and that a narrative shift is needed to change people’s mindset about its poor performance in recent months.

He pointed out that Solana currently has ‘mind share’, moves quickly, and is likely to outperform Bitcoin when the market is strong, while Ethereum has an ‘equal beta’ to Bitcoin, or maybe a little lower.

In the podcast, Hayes pointed out that Solana’s impressive rise from around $7 to over $180 highlights Solana’s ability to quickly gain and hold value, especially after the FTX collapse.

Hayes also touched on the regulatory aspect, warning that it is unlikely that cryptocurrency regulation will improve significantly regardless of political changes.

His advice to investors and traders is to focus more on market fundamentals rather than political developments, which often have a temporary impact on market dynamics.

The session concluded with Hayes emphasizing the strategic importance of selecting high-beta assets like Solana in times of expected monetary easing.