Bitcoin (BTC) has been on a bullish price movement for over a week, fueled by Donald Trump’s presidential election victory. The leading cryptocurrency has unlocked multiple all-time highs (ATHs), tapping $90,000 earlier today.
Arthur Hayes, the co-founder of the BitMEX crypto exchange, believes that the crypto asset could attain a price height of $1 million if Trump’s administration adopted the Chinese government’s economic development model.
Trump’s Tenure to Boost the Economy
In his latest article titled “Black or White?” Hayes highlighted how Trump’s latest tenure as the United States’ 47th president could embrace China’s economic development model.
Calling it the “American Capitalism with Chinese Characteristics,” the BitMEX co-founder enlisted various adjustments he expects the new administration to make to ensure economic growth in the country.
He hopes the U.S. government will implement tax incentives and subsidies for key industries and provide cheap financing via the banking system. If these expectations play out well, the country could see the return of manufacturing companies that left due to a decline in productivity gain, trade issues, and other factors. Such a return could mean more jobs for Americans and, hence, more money in the economy.
Hayes expects this to result in a rapid bank credit expansion, possibly surpassing the $4 trillion stimulus scale seen during the COVID-19 pandemic.
Impact on BTC
The BitMEX co-founder believes that BTC will become the sought-after asset as the U.S. dollar devalues. Such a massive adoption could drive bitcoin’s value to as high as $1 million.
While it remains unknown how true this would be, market experts believe that Trump’s administration will foster economic growth for the country.
Since his electoral victory as the new American president, BTC has unlocked massive price gains, going from around $68,700 to a peak of $89,800 in a week. At the time of writing, BTC exchanged hands with $88,000, representing an 8% increase within the past 24 hours.
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