Former CEO BitMEX Arthur Hayes has predicted the Bitcoin exchange rate under Donald Trump. According to him, during his time in the White House, the Bitcoin exchange rate could reach $1 million.
In his new essay, Hayes wrote that to reduce the debt-to-GDP ratio to 70%, America would need $10,5 trillion in new loans. That amount could have a significant impact on asset prices, especially Bitcoin .
Donald Trump will likely pursue a model of “American capitalism with Chinese characteristics, which consists of ensuring nominal GDP growth by providing government tax breaks and subsidies to relocate critical industries.”
According to Arthur Hayes, when governments release trillions of dollars into the economy through various credit programs or loans, the money supply will grow. As a rule, such injections cause inflation and depreciation of fiat currencies. As a result, investors will look for alternatives, such as Bitcoin .
With every new dollar injected into the US economy, the first kriptovalyuta will become an increasingly attractive option for market participants, Hayes is sure. That is why Bitcoin has a chance to rise in price to $1 million.
