As the U.S. presidential election nears, BitMEX founder Arthur Hayes has spotlighted Solana (SOL) as his top pick for trading, predicting that it will outperform other major crypto assets. Hayes, speaking in a recent Unchained YouTube interview, sees Solana as the “high-beta Bitcoin” for election season, emphasizing its volatility and responsiveness to Bitcoin’s moves, making it an attractive option in a market potentially primed for sharp shifts.
Why Hayes Prefers Solana Over Ethereum
Hayes describes Solana as having the “mind share” and fast-paced action that he seeks, particularly when compared to Ethereum, which he considers “old, slow, and boring.” He believes that Solana’s quick movements and high liquidity will amplify gains as Bitcoin performs well, whereas Ethereum lacks the same potential for swift gains in this context.
For Hayes, Solana’s volatility offers more trading opportunities than Ethereum, even though he maintains a long-term position in ETH, highlighting his view that Solana is simply better for short-term trades at this moment.
Solana is emerging as a leader in the altcoin space, especially as Ethereum loses steam in the current bull market. According to Hayes, Solana’s strong performance signals a shift in altcoin flows, with the 200-day moving average cloud playing a crucial role.
Trading above this cloud is bullish, and the analyst is closely watching for a close above $232 billion in the altcoin market cap (excluding the top 10) to signal further strength. If this level is reached, he expects Solana could gain another 30%, marking it as a top pick for the season.
The Election Impact on Crypto Rotation
Looking at the upcoming election, Hayes anticipates Bitcoin to drive a wave of altcoin rotation, with Solana set to lead in performance. Instead of buying more Bitcoin, 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.
Will Solana Price break above $200?
Solana’s price could be on track for a rally past $200 in November, spurred by robust on-chain growth and a bullish breakout from a pennant pattern. After consolidating near the $200 level over the past several months, SOL has seen a significant recovery from $120 to $183 recently. Key support around $160, near the 50-day EMA, could give buyers a strong foundation to push higher.
Plus, Solana’s network is expanding, with new addresses surging to 5.9 million in October and Total Value Locked (TVL) rising by 54% within six weeks, signaling increased network activity and demand. If the support holds and momentum continues, SOL may well achieve a breakout above $200 by month’s end.
At the time of writing, Solana trades at $169.51, down slightly, while Bitcoin and Ethereum stand at $70,749 and $2,502 respectively.
