Arthur Hayes Sees USD Depreciation and Bitcoin Boom under Donald Trump

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As a seasoned crypto investor with years of market observations under my belt, I find Arthur Hayes’ recent analysis both intriguing and plausible. His foresight in predicting the economic trajectory of the US under the leadership of Trump and Harris before the election is commendable.

In a recent post titled “Black or White?”, former BitMEX CEO Arthur Hayes believes that Donald Trump’s forthcoming economic policies might lead to the weakening of the U.S. dollar. He expounds on this perspective, discussing the intricate relationship between politics and financial markets in his article.

It’s important to mention that prior to last week’s election, the co-founder of BitMEX shared his thoughts on what the possible economic condition of the United States might look like under the leadership of Donald Trump and Kamala Harris.

Arthur Hayes on Bitcoin Surge and Dollar Depreciation

He thinks Democratic Candidate Kamala Harris would take more aggressive measures to prevent a financial crisis. Referencing the economic meltdown and devaluation of tokens in Japan, Hayes mentioned that Harris would take measures to avert such a crisis. She is likely to instruct US Treasury Secretary Janet Yellen to use monetary tools to address the situation.

Regarding cryptocurrency, Arthur Hayes believes that price increases are inevitable, regardless of who occupies the White House.

With Trump’s election win, BitMEX co-founder Hayes foresees a potential collapse of the U.S. dollar. Although this prediction is detrimental for the dollar, it appears advantageous for Bitcoin, the leading cryptocurrency. Interestingly, Hayes suggests that Bitcoin could reach as high as $1 million due to the anticipated depreciation of the dollar. Notably, Bitcoin has experienced a significant increase in value over the past seven days.

A previous executive at Bitmex predicted that the price of bitcoin during this cycle could skyrocket, potentially reaching hundreds of thousands of dollars, even a million dollars. He explained that there’s an enormous amount of debt that needs to be refinanced as we move into a time when the global monetary system is undergoing a massive transformation.

Hayes urges the incoming 47th president to borrow a leave from China’s economic development model. In his opinion, this will help increase the money supply and accelerate economic growth in the United States. Part of this policy will encourage the return of manufacturing in the US by implementing favorable legislation, policies, and fiscal stimuli.

These industrial strategies encompass tax breaks and grants for crucial sectors, with the possibility of the U.S. administration offering affordable loans via the financial system. If the decline of the dollar appears unavoidable, Bitcoin could gain increased appeal.

Bitcoin Surges to $89,000 Post Trump’s Win

Over the past week, Bitcoin, the initial form of digital assets, has reached multiple record highs (ATH). After trading at around $65,000, it soared to reach $89,000 within just 7 days. At the moment of writing, its value stands at $89,023.65, representing a 9.55% rise in the last 24 hours and a significant 29.24% increase over the past week.

The increase in the coin’s worth was primarily fueled by Donald Trump’s election victory and other Republican successes. At the same time, the crypto sector anticipates substantial changes within the regulatory environment of these industries. This could potentially lead to the replacement of the current chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler.

Moving ahead, it’s anticipated that regulatory bodies like the SEC, OCC, and FDIC may take a more favorable stance towards cryptocurrencies. This shift could lead to less restrictive policies, making it easier for digital assets to be incorporated into the conventional financial landscape.

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2024-11-12 13:20