WuBlockchain Weekly: US Debt and Deficit Tailwinds for Bitcoin and Gold, Trump Crypto Deals Cost Investors $4.7B and Solana Proposal Aims to Cut Token Issuance, etc

1. Arthur Hayes: US Treasury to Keep Injecting Liquidity; New Bitcoin Bull Market Has Started link

Arthur Hayes has published his latest article “Same Old Wine in New Bottles”. US Treasury Secretary Scott Bessent is suppressing yields by expanding long‑term US Treasury buybacks and other measures, essentially creating more US dollar liquidity for the market, with Bitcoin set to benefit first. Hayes argues that in the most aggressive scenario, the Treasury Department may even implement quasi‑yield curve control when the 10‑year US Treasury yield breaks above 5%. A more probable path is to gradually scale up buybacks and deploy around $1 trillion in TGA funds. He believes Bitcoin has entered a new bull market with substantially heightened volatility, noting that Maelstrom is currently at “maximum risk exposure”, with major bets on BTC, ETH, ENA and ETHFI.

GSR’s latest weekly report shows that Bitcoin broke out of its seven‑week $60,000‑$70,000 range last week, peaking at approximately $79,000 and surging roughly 25% for the week, marking its strongest weekly performance of the year. Total market short liquidations reached around $4.6 billion from Wednesday to Friday. GSR states that this rally is driven by fresh external capital re‑entering the market rather than capital rotation within the crypto space, with funds heavily skewed toward BTC and ETH. Only 33% of the top‑100 altcoins outperformed BTC during the period, indicating a full‑blown “altcoin season” has not yet arrived. Markets will keep a close eye on US PCE data, NVIDIA earnings and Jackson Hole. Relative strength in BTC and ETH could persist should long‑end Treasury yields remain subject to policy intervention and inflows into ETFs and stablecoins hold steady.