BitMEX co-founder Arthur Hayes claims the altcoin season is ongoing despite market skepticism.

Hayes explains that the Fed’s “reserve management purchases” function as hidden money printing, influencing crypto liquidity.

Privacy-focused projects like Zcash and zero-knowledge technologies may lead the next altcoin surge.

While many crypto traders wait for the next altcoin rally, Arthur Hayes, co-founder of BitMEX, says the market has been in altcoin season all along. Speaking in a recent podcast, Hayes emphasized that what traders often perceive as inactivity is simply a matter of not owning the right assets.

He cited his own portfolio, highlighting early investments in projects like Athena, which significantly outperformed during the past cycle. Hayes suggests that 2026 could see a new wave of high-performing altcoins, particularly in the privacy and zero-knowledge technology sector.

He believes investors should start looking for projects offering anonymity and resistance to data surveillance. Hayes mentioned that privacy features will address growing concerns around AI de-anonymization and government oversight, making these assets potentially dominant in the next market cycle.

Federal Reserve’s Reserve Management Purchases Explained

Additionally, Hayes talked about monetary policy and the Federal Reserve’s use of “reserve management purchases” or RMP. Although it is not referred to as quantitative easing or QE, it basically serves the same purpose: it infuses money or adds liquidity to the financial system.

As mentioned, the Federal Reserve had quietly started to inject about $40 billion into the market through the RMP to support the U.S. Treasury market, according to Hayes.

Hayes believes that such actions are underrated in the market. In this way, the Fed ensures that its liquidity is distributed in vital areas without attracting political opposition.

The goal of such stealth is to retain confidence in assets such as Bitcoin, which he believes are highly responsive to changes in dollar liquidity. He believes that market pricing will begin to look better come January, depending on how this program is implemented.

Privacy Coins as the Next Altcoin Breakout

According to Hayes, the next big thing in the world of altcoins could be related to the realm of privacy coins. Hayes cited the example of Zcash and said that the key to maintaining user anonymity is shielded transactions.

Although many exchanges have restricted the trade of privacy coins due to regulations, Hayes believes that there is increasing interest from both retail and institutional investors. Another area that Hayes said has broad appeal is the aspect of zero knowledge.

According to Hayes, the concern about privacy and new technology may help the top-performing altcoins to be derived from privacy-related projects over the next few years. For the investors, discovering these projects earlier will create a great opportunity, as experienced by Hayes when he encountered Athena.

Also Read: Bitcoin, Ethereum, and Altcoins Face Mixed Week While TRON Surges to 350 Million Accounts

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Filed under: Bitcoin - @ December 21, 2025 9:00 am