Arthur Hayes explains how the price of Bitcoin could rise to $1 million

Bitcoin (BTC) has been in a bullish price movement for over a week, boosted by Donald Trump’s victory in the presidential election. The leading cryptocurrency has unlocked multiple all-time highs (ATHs) and reached $90,000 today.

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

Trump’s mandate to boost the economy

In his latest article entitled “Black or White?” Hayes highlighted how Trump’s final term as the 47th president of the United States could adopt China’s economic development model.

Calling it “American capitalism with Chinese characteristics,” the BitMEX co-founder included several adjustments he hopes the new administration will make to ensure economic growth in the country.

He expects the US government to implement tax incentives and subsidies for key industries and provide cheap financing through the banking system. If those expectations play out, the country could see the return of manufacturing firms that left due to declining productivity gains, trade woes and other factors. This return could mean more jobs for Americans and therefore more money in the economy.

Hayes expects this to result in a rapid expansion of bank credit, possibly exceeding the scale of the $4 trillion stimulus seen during the COVID-19 pandemic.

Impact on BTC

The BitMEX co-founder believes that BTC will become the sought-after asset as the US dollar depreciates. Such massive adoption could drive bitcoin’s value up to a billion dollars.

Although it is not yet known to what extent this would be, market experts believe that the Trump administration will encourage economic growth in the country.

Since his election victory as the new US president, BTC has unlocked massive price gains, rising from around $68,700 to a high of $89,800 in one week. At the time of writing, BTC exchanged hands at $88,000, representing an 8% increase in the last 24 hours.

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