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BitMEX co-founder Arthur Hayes recently detailed the investment approach of his Maelstrom Fund, emphasizing concentrated holdings in Bitcoin and Ethereum alongside selective altcoin exposure.

The fund allocates 60% to Bitcoin, 20% to Ethereum, and reserves the remainder for smaller cryptocurrencies and early-stage token agreements. Hayes also holds physical gold, gold-related equities, and U.S. Treasury bills, blending crypto’s growth potential with traditional asset stability.

Hayes projects Bitcoin could reach between $150,000 and $200,000 by mid-2025, followed by a climb to $250,000 by year-end. This forecast hinges on historical market patterns and macroeconomic factors, including fiscal policies impacting fiat currencies.

He cautions investors to prepare for abrupt price declines before sustained upward movement, underscoring Bitcoin’s tendency to fluctuate sharply during bullish cycles.

Ethereum, trading near $2,500, faces challenges but could hit $5,000 in 2024, according to Hayes. He links this to renewed interest in decentralized applications, though achieving higher targets like $20,000 would require broader adoption.

For altcoins, Hayes anticipates growth tied to practical use cases, dismissing tokens with inflated valuations lacking real-world utility. He warns that speculative projects without clear purposes may struggle as markets mature.

Hayes positions Bitcoin as a potential hedge against currency devaluation, citing concerns over U.S. fiscal discipline. Its capped supply and decentralized framework, he argues, make it a digital counterpart to gold, particularly if trust in traditional finance erodes.

Ethereum (ETH) is currently priced at $2,574.20, showing a +1.96% gain on the day, continuing its climb amid growing institutional activity and positive technical developments. Over the past 30 days, ETH has surged +62.09%, making it one of the top-performing large-cap assets this cycle.

However, it remains -22.75% year-to-date and -29.84% down over the past year, showing that the current move is part of a recovery from deep multi-month drawdowns.

From a technical standpoint, Ethereum is now trading firmly above its major resistance at $2,514, forming a strong bullish continuation pattern. Indicators suggest the potential for a push toward $2,746, with $3,000 as the psychological and structural breakout target.

However, if price drops below $2,400, support is expected near $2,121. Momentum remains positive, reinforced by strong price structure and increasing volume.

On the fundamental side, Ethereum supply on exchanges has dropped to 4.9%, the lowest in a decade, with over 1 million ETH withdrawn in just the past month — a strong signal of accumulation by large holders and institutions.

Additionally, $64.9 million in spot Ethereum ETF inflows were recorded over three consecutive days, highlighting growing confidence in ETH as a regulated investment vehicle.

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