Arthur Hayes Explains How Bitcoin’s Value Could Soar To $1M

Bitcoin (BTC) has been in a price movement for over a week, fueled by Donald Trump's presidential election win. The leading cryptocurrency has opened multiple all-time highs (ATHs), hitting $90,000 earlier today.

Arthur Hayes, co-founder of the BitMEX crypto exchange, believes that if the Trump administration adopts the Chinese government's economic development model, the crypto asset could reach a price height of $1 million.

Trump's stay to boost the economy

“Black or white?” In a recent article titled Hayes highlighted how Trump's recent tenure as the 47th president of the United States has embraced the Chinese model of economic development.

The co-founder of BitMEX called it “American capitalism with Chinese characteristics” and the new administration has made various adjustments to ensure economic growth in the country.

They hope the US government will implement tax incentives and subsidies for key industries and provide cheap financing through the banking system. If these prospects turn out well, the country may be able to restore the manufacturing companies that left the country due to declining productivity gains, trade concerns and other reasons. Such a return could mean more jobs for Americans and more money in the economy.

Hayes expects this to lead to a rapid expansion of bank lending, perhaps even more than the $4 trillion stimulus measure seen during the Covid-19 pandemic.

Impact on BTC

The co-founder of BitMEX believes that BTC will become the desired asset when the US dollar declines. Such a large adoption can increase the value of bitcoin to a million dollars.

While it is not known how true this will be, market experts believe that the Trump administration will boost economic growth for the country.

Since his election as the new US President, BTC has made huge price gains, rising from around $68,700 to $89,800 in just one week. At the time of writing, BTC was trading at $88,000, an 8% increase in the last 24 hours.