Bitcoin Bull Run Is Here: Arthur Hayes Says Treasury Buybacks Will Send BTC Soaring

Key Takeaways

• Arthur Hayes says Bitcoin's next bull run has begun as US Treasury bond buybacks inject more dollar liquidity into markets.

• The Treasury increased planned long-term bond buybacks by around $20 billion, but Hayes expects larger interventions if yields keep climbing.

• The setup resembles late 2023, when Treasury bill issuance helped release roughly $2.4 trillion from the Fed's reverse repo facility.

Bitcoin has entered a new bull market as the US Treasury prepares to inject more dollar liquidity into financial markets, according to BitMEX co-founder and Maelstrom chief investment officer Arthur Hayes.

In his latest essay, Same Same But Different, Hayes argued that Treasury Secretary Scott Bessent's expansion of longer-dated bond buybacks represents a form of indirect money printing.

Although the initial increase remains relatively modest, Hayes expects the government to deploy larger interventions if Treasury yields continue rising.

Bitcoin rallied after Bessent announced additional buybacks on Aug. 19. Hayes believes that reaction demonstrates the cryptocurrency's sensitivity to changes in global liquidity and signals the beginning of a potentially much larger move.

Treasury Buybacks Could Release More Dollar Liquidity