Bitcoin will soar as high as $1 million as US President-elect Donald Trump’s economic policies will create the “most fiat money in history.”
That’s according to BitMEX co-founder Arthur Hayes, who says Bitcoin is poised to outperform other asset classes amid the inevitability of the US spending trillions of dollars to service its debt.
“As the freely traded supply of Bitcoin dwindles, the most fiat money in history will be chasing a safe haven from not just Americans but Chinese, Japanese, and Western Europe,” Hayes wrote on his blog on Tuesday.
Investors are already eyeing positive gains for Bitcoin under a pro-crypto Trump.
Bitcoin’s price has risen 24% in the last week, setting a new peak above $92,000.
Based on Hayes’ prediction, Bitcoin’s price could increase more than tenfold under Trump’s policies.
Hayes wrote that he based his analysis on the expectation that US bank credit will expand under Trump as the incoming president seeks to revamp American industry.
The BitMEX said this credit expansion will come as American industries use government subsidies to upscale their capacity.
But these loans will erode the equity reserves of US lenders, likely prompting the Federal Reserve to intervene, which in turn could weaken the dollar, he explained.
Hayes wrote the cryptocurrency market will benefit from the inevitable quantitative easing that will arise if his prediction comes true.
Bitcoin surged to $67,000 on the $4 trillion stimulus package spent during Covid. It was $3,800 at the start of the pandemic ― nearly an 18-fold increase.
Hayes anticipates a similar parabolic surge for Bitcoin if Trump injects $10.5 trillion in stimulus spending to bring the country’s debt back to 2008 levels.
“This is how Bitcoin goes to $1 million,” Hayes wrote.
Crypto market movers
Bitcoin is up 4.9% over the past 24 hours to $92,226 at midday New York time.
Ethereum is up 1% to $3,240.
What we are reading
Revolut expands crypto exchange to European markets ― DL News
9 New All-Time Highs in Crypto This Week Alone From the Trump Bump ― Unchained
6 signs retail is coming back ― Milk Road
Trump Promised Clear Crypto Regulations, but the SEC Might Not Be Prepared to Give Them ― Unchained
Bitcoin enters ‘Euphoria Zone’ and could soar to $125,000 by year-end, analysts say — DL News
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. To share tips or information about stories, please contact him at osato@dlnews.com.
