The post Arthur Hayes Says USD Could Crash Under Trump, Bitcoin To Reach $1 Million! appeared on BitcoinEthereumNews.com.

The Former BitMEX CEO Arthur Hayes in his latest ‘Black or White’ Post has expressed how Trump’s incoming economic policies could likely trigger USD Depreciation. He has expressed his view on how politics and financial markets interact in his article.  Notably, he foresees an impending crash of the United States dollar under Trump. While this could be bad for the dollar, it could boost Bitcoin. Hayes notes that the coin may soar as high as $1 million amidst the dollar’s depreciation. Credit Expansion Could Boost BTC Price The US has grappled with a growing debt-to-GDP ratio for decades. In 2008, it took $4 trillion in credit to reduce this ratio from 132% to 115%. According to the former BitMEX CEO, cutting the ratio to 70%, where it stood in 2008, could demand $10.5 trillion in new credit. This massive credit expansion could spark major changes in asset prices, especially for Bitcoin. Hayes claims that the upward trend after Trump’s victory is for good reason, citing Trump’s quantitative easing (QE) policies. QE refers to a monetary policy in which a central bank buys a set amount of government bonds to stimulate the economy by increasing available cash. When central banks inject liquidity, it often drives investors to pursue higher returns in alternative assets, which can lead to a rise in Bitcoin’s price. Bitcoin, with its fixed supply, stands in stark contrast to fiat currencies, which also makes it a popular hedge against inflation. Hayes believes that with every dollar the US injects into the economy, Bitcoin becomes an even more attractive option. He noted that with fewer coins available, even small increases in demand can push prices up significantly. As more fiat money enters the economy, the demand for assets with fixed supplies grows.  Hayes Cites China’s Economic Model To Accelerate…

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Filed under: News - @ November 12, 2024 4:27 pm