Former BitMEX CEO Arthur Hayes predicted the price of Bitcoin under Donald Trump. In his opinion, during his time in the White House, the price of Bitcoin could reach $1 million.
In his new essay, Hayes wrote that to reduce the debt-to-GDP ratio to 70%, America will need new loans of $10.5 trillion. Such an amount could significantly impact asset prices, especially Bitcoin.
Donald Trump is likely to employ a model of 'American capitalism with Chinese characteristics', which involves ensuring nominal GDP growth through government tax breaks and subsidies to relocate critical industries.
According to Arthur Hayes, when authorities inject trillions of dollars into the economy through various lending programs or loans, the money supply will increase. Typically, such injections lead to inflation and depreciation of fiat currencies. As a result, investors will seek alternative options, such as Bitcoin.
With each new dollar injected into the U.S. economy, the first cryptocurrency will become an increasingly attractive option for market participants, Hayes believes. That is why Bitcoin has a chance to rise to $1 million.
