TL;DR
- Arthur Hayes, former CEO of BitMEX, predicts a fall in the US dollar under Donald Trump’s administration, which could benefit Bitcoin.
- Hayes believes that massive credit expansion in the US would drive demand for assets with limited supply, such as BTC.
- Bitcoin, due to its deflationary nature, would position itself as a preferred safe-haven asset for investors.
Arthur Hayes, former CEO of the cryptocurrency exchange BitMEX, has shared his views on the economic future of the United States under Donald Trump’s administration.
Arthur suggested that the former president’s economic policies could lead to a sharp decline in the US dollar. In his recent “Black or White” post, Hayes asserts that future economic decisions could weaken the fiat currency, which, in his opinion, could be a key factor driving the rise of Bitcoin as a preferred store of value for investors.
Hayes believes that the value of the dollar could continue to decrease due to massive credit expansion. A measure that could be implemented to reduce the growing debt-to-GDP ratio in the US. According to his analysis, the country would need a significant amount of new credit to achieve the debt levels seen in previous years. In this context, Hayes argues that an increase in the money supply could lead to greater demand for assets with a limited supply, like Bitcoin, which would drive its price to new levels.
Arthur Hayes: Bitcoin (BTC) Could Surpass $1 Million Per Unit
The former BitMEX CEO points out that the economic model of the US could resemble that of China. In the sense that increased debt and state intervention could become permanent tools for economic growth. According to Hayes, expanding the money supply would be a determining factor for Bitcoin to consolidate as a safe-haven asset. As inflation and the devaluation of the dollar drive demand for cryptocurrencies.
Moreover, Hayes mentioned that Bitcoin’s deflationary structure makes it an attractive asset compared to other traditional investments. Like real estate, which could lose value in an inflationary economic environment. In his opinion, BTC could surpass $1 million per unit. As more investors recognize the cryptocurrency’s potential to preserve purchasing power.
Recently, Bitcoin (BTC) has reached new all-time highs, approaching $90,000. This increase has been driven by rising demand from both retail and institutional investors
