- Donald Trump’s economic policies are auspicious for Bitcoin investors.
- Two forces will drive Bitcoin to $1 million.
- Capital controls are coming, said Arthur Hayes.
What happens when foreign investors have had their fill of US Treasury bonds? Bitcoin to $1 million.
That’s Arthur Hayes’ take. And the crypto influencer and co-founder of BitMEX is bound to draw some nods of approval — he did just call Bitcoin’s slide to $74,000 and subsequent rebound.
In his latest blog post, Hayes argued that the combination of US President Donald Trump’s economic policies and rising global instability will drive investors away from US government debt, long deemed among the safest securities on the planet.
Bitcoin will pick up the slack.
“Foreign capital repatriation and the devaluation of the gargantuan stock of US treasuries will be the two catalysts that will power Bitcoin to $1 million sometime between now and 2028,” he wrote.
“The time is now to make hay while the sun king takes a shine to Bitcoin.”
Lost century
Trump’s support for crypto, alongside weakening confidence in the US financial system, is rapidly becoming a megatrend, Hayes said.
In fact, it’s been a lost century for investors holding US Treasuries, according to Chris Kuiper, VP of research for Fidelity Digital Assets.
“If you held a Treasury bill for the past 100 years, after inflation and tax, you’d have made no progress,” Kuiper said at a Bitcoin conference.
“It’s worse than I thought.”
Capital controls
There’s more. Hayes said Western nations may turn to capital controls to prevent the flight of money outside borders, said Hayes.
That’s because as “nation-first” monetary policy intensifies, especially under a Trump-led administration, countries in the West will seek to trap capital at home.
“No matter who you are, it will not be a given that your capital can be invested in the globally highest-yielding, lowest-risk asset within the fiat financial system,” said Hayes.
But there’s a workaround.
“As long as there is the internet, you will be able to sell fiat for Bitcoin.”
Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at psolimano@dlnews.com.
