The crypto market suffered a dramatic crash after what seemed like a short-lived recovery following US President Donald Trump’s strategic crypto reserve announcement.
Arthur Hayes, former CEO of BitMEX, argues that Trump’s economic strategy could have a significant impact on Bitcoin and the broader cryptocurrency market.
Hayes believes that Trump's approach of extensive debt issuance will require the Federal Reserve to increase money supply and lower interest rates, which historically has been favorable for Bitcoin.
Hayes predicts that potential liquidity injections triggered by the reformulation of US debt and a recession induced by spending cuts could lead to a Bitcoin rally and a possible price increase of up to $1 million during Trump's presidency.