Arthur Hayes Predicts Bitcoin Could Hit $1 Million Amidst Trillion-Dollar Deficit Spending Under Trump Administration

Bitcoin might hit $1 million soon, according to Arthur Hayes. He believes this could happen because of nearly $11 trillion in deficit spending. On November 13, 2024, Hayes explained that Bitcoin has a clear path to this milestone, especially with Donald Trump set to take office.

During the last major expansion of bank credit, Bitcoin soared nearly 18 times in value. Hayes predicts a similar surge now. He thinks Trump’s economic policies will lead to “the most fiat money in history.” This means Bitcoin could outperform other assets as the U.S. government spends trillions to manage its debt.

As Hayes stated in his blog, “As the freely traded supply of Bitcoin dwindles, the most fiat money in history will be chasing a safe haven.” This means not just Americans, but also investors from China, Japan, and Western Europe could flock to Bitcoin.

Recently, Bitcoin’s price jumped 24%, reaching over $93,000. If Hayes is right, Bitcoin could increase more than tenfold under Trump’s policies. He bases this on expectations that U.S. bank credit will expand as the new president aims to boost American industries.

Hayes believes this credit expansion will happen as businesses use government subsidies to grow. However, he warns that these loans might reduce the equity reserves of U.S. lenders. This could prompt the Federal Reserve to step in, which might weaken the dollar.

He also expects the cryptocurrency market to benefit from the quantitative easing that could follow. For context, Bitcoin surged to $67,000 during the $4 trillion stimulus package for COVID-19. It started at just $3,800—a nearly 18-fold increase.

Hayes thinks we could see a similar rise if Trump injects $10.5 trillion in stimulus spending to bring the national debt back to 2008 levels. He confidently states, “This is how Bitcoin goes to $1 million.”

In the latest market updates, Bitcoin is up 4.9% in the last 24 hours, now at $92,226. Ethereum has also seen a slight increase of 1%, trading at $3,240.

Here are some recent articles you might find interesting: Revolut is expanding its crypto exchange to European markets, and there have been nine new all-time highs in crypto this week thanks to the “Trump Bump.” Additionally, analysts are saying Bitcoin might enter the “Euphoria Zone” and could reach $125,000 by year-end.

Osato Avan-Nomayo is a DeFi correspondent based in Nigeria. He covers DeFi and tech news. If you have tips or information about stories, feel free to reach out to him at osato@dlnews.com.