Will Bitcoin Hit $1M? Arthur Hayes Links US Economy to Crypto Price Surge

Bitcoin has seen a remarkable surge over the past week, propelled by Donald Trump's presidential election victory. The premier cryptocurrency continues to shatter records, recently reaching an unprecedented $90,000. Arthur Hayes, co-founder of BitMEX, suggests that Bitcoin could hit $1 million if Trump's administration adopts China's economic framework.

In a recent article titled "Black or White?," Hayes explored how Trump's term as the 47th President of the United States might align with China's economic growth model. Dubbed "American Capitalism with Chinese Characteristics" by Hayes, he anticipates several strategic adjustments under Trump's leadership aimed at enhancing U.S. economic growth.

Key initiatives could include tax breaks and subsidies targeted at major industries, alongside affordable financing options via the banking sector. These strategies might encourage the repatriation of manufacturing companies that previously exited due to productivity, trade, and other challenges. The return of such industries could translate into job growth and increased economic activity.

Hayes also anticipates a significant expansion in bank credit, potentially eclipsing the $4 trillion stimulus experienced during the COVID-19 pandemic.

The heightened economic activity may depreciate the U.S. dollar, positioning Bitcoin as a preferred asset. Hayes speculates that this could propel Bitcoin's price to $1 million. Although the realization of these predictions is yet unclear, many market analysts agree that Trump's administration is likely to drive economic advancement.

Since Trump's electoral triumph, Bitcoin has witnessed substantial gains, surging from approximately $68,700 to a peak of $89,800 within a week. Currently, the cryptocurrency trades at $88,000, marking an 8% rise in the last 24 hours. The analysis by Arthur Hayes, detailing potential Bitcoin price surges, first appeared on CryptoPotato.