Arthur Hayes, co-founder of the cryptocurrency exchange BitMEX, has made a bold prediction about Bitcoin’s future under President-elect Donald Trump’s administration. In a blog post titled “Black or White,” Hayes argues that Trump’s economic policies will lead to a surge in Bitcoin’s value, potentially pushing it to a price of $1 million per unit.
Hayes’s prediction is based on his belief that Trump’s policies will weaken the dollar. He anticipates that the Trump administration will significantly expand bank credit, resulting in an increased money supply. Additionally, Hayes expects Republicans to pass legislation encouraging domestic manufacturing, supported by government subsidies and tax credits. This, he believes, will lead to increased government debt and a devalued dollar.
With a weaker dollar, Hayes predicts that demand for Bitcoin will rise. He argues that investors will seek refuge in Bitcoin as a safe haven asset, particularly as the supply of Bitcoin remains limited. “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 Europeans. Get long, and stay long.”
Hayes has been a long-time proponent of Bitcoin, consistently highlighting its safe haven qualities. He argues that while central bank digital currencies (CBDCs) may rival cryptocurrencies in terms of speed, their inflationary risks due to government involvement make Bitcoin a more attractive option.
While the presidential election was a major event, Hayes has maintained that Bitcoin’s long-term bullish trend will continue regardless of the political landscape.
At the time of writing, Bitcoin was trading at $86,494.50, down 2.90% in the last 24 hours. It remains to be seen whether Hayes’s predictions will come true, but his insights offer a fascinating perspective on the potential impact of Trump’s economic policies on the cryptocurrency market.
