Arthur Hayes Predicts USD Depreciation and Bitcoin Surge Post-Trump Victory
Former BitMEX CEO Arthur Hayes suggested that Donald Trump's economic policies may lead to USD depreciation in his article "Black or White?". He discussed the relationship between politics and financial markets, referencing prior opinions on the US economy under Trump and Kamala Harris.
Arthur Hayes on Bitcoin Surge and Dollar Depreciation
Hayes believes that Kamala Harris would implement aggressive measures to prevent a financial crisis, likely directing Treasury Secretary Janet Yellen to utilize monetary tools. He posited that regardless of the presidential outcome, cryptocurrency prices are expected to rise.
With Trump's victory, Hayes anticipates a significant decline in the US dollar's value, which he views as beneficial for Bitcoin. He predicted that Bitcoin could reach $1 million amidst this depreciation, noting its recent price surge.
“The bitcoin price in this cycle is going to go very high — hundreds of thousands of dollars, maybe $1 million,” said Hayes. He emphasized the substantial debt requiring rollover and the transformative changes in global monetary structures.
He recommended that the incoming president adopt elements from China's economic model to boost the money supply and foster growth. This approach would include tax incentives and subsidies for key industries and affordable financing through banks. If the dollar depreciates, Bitcoin could become increasingly appealing.
Bitcoin Surges to $89,000 Post Trump’s Win
Recently, Bitcoin reached an All-Time High (ATH) of $89,000, rising from below $65,000 within a week. As of now, BTC is priced at $89,023.65, reflecting a 9.55% increase in 24 hours and a 29.24% increase over the past week.
This price surge is largely attributed to Trump’s election win and Republican successes, with expectations of significant regulatory changes affecting the crypto industry, including potential leadership changes at the US Securities and Exchange Commission (SEC).
The SEC, OCC, and FDIC are anticipated to adopt a more crypto-friendly stance, possibly easing restrictions and aiding the integration of digital assets into traditional finance.