Key Points
- Arthur Hayes, ex-BitMEX CEO, predicts USD depreciation and Bitcoin boom under Trump’s economic policies.
- Bitcoin’s value increases due to Trump’s win and anticipated changes in the regulatory landscape of the crypto industry.
Arthur Hayes, the former CEO of BitMEX, has speculated that the economic policies of Donald Trump could lead to a depreciation of the US dollar.
In a recent post entitled “Black or White?”, Hayes shared his thoughts on the relationship between politics and financial markets.
Hayes’ Perspective on Economic State Under Trump
Prior to the election, Hayes had expressed his views on the potential economic climate in the US under the leadership of Trump and Kamala Harris.
He believed that Kamala Harris, the Democratic Candidate, would take assertive steps to prevent a financial meltdown.
Drawing parallels with the token devaluation and economic crisis in Japan, Hayes asserted that Harris would utilize monetary tools to mitigate such an event.
As for cryptocurrencies, Hayes maintained that their prices would rise regardless of who occupies the White House.
Implications of Trump’s Victory on Crypto and USD
Hayes foresees a potential crash of the US dollar following Trump’s win.
While this might spell trouble for the dollar, it could be a boon for Bitcoin.
Hayes predicts that amidst the dollar’s depreciation, Bitcoin’s value could skyrocket to as much as $1 million.
He suggests that the incoming president could learn from China’s economic development model to increase the money supply and stimulate economic growth in the US.
This could involve implementing favorable legislation, policies, and fiscal stimuli to encourage the return of manufacturing in the US.
If the dollar’s depreciation is inevitable, Bitcoin could become a more attractive option.
Bitcoin’s Value Post Trump’s Win
Following Trump’s win, Bitcoin has hit several new All-Time Highs (ATH).
In just a week, the value of Bitcoin has surged from below $65,000 to $89,000.
This increase in Bitcoin’s value is largely attributed to Trump’s win and general Republican victories.
The crypto industry is also anticipating significant changes in the regulatory landscape, including the replacement of the current US Securities and Exchange Commission (SEC) Chairman Gary Gensler.
Moving forward, institutions like the SEC, OCC, and FDIC are expected to adopt a more crypto-friendly approach.
This could potentially ease restrictions and facilitate the integration of digital assets into the traditional financial system.
