Arthur Hayes Says ‘Back Up The Truck’ On Crypto: Bitcoin, Ethereum And This Altcoin Could Benefit

Hayes said OTC brokers were approaching Maelstrom for dollar borrowing, a sign, he said, that the basis trade was back.

• He said that Bessent’s expanded long-end bond buybacks are the same yield-capping money printing that Janet Yellen deployed in late 2023.
• The Maelstrom chief investment officer said the best hope for Bitcoin would be for the Bank of Japan to pledge to buy back long-dated paper without limit whenever yields go above 5%.

Bitcoin (BTC) may have found another catalyst in an unlikely place: the U.S. Treasury market. Arthur Hayes says a fresh wave of U.S. Treasury liquidity could be a major catalyst for crypto, as Treasury Secretary Scott Bessent’s expanded bond buybacks could increase dollar liquidity and ultimately funnel more money into risk assets, including crypto. 

Hayes urged investors to “back up the truck and buy crypto with both hands”. Maelstrom chief investment officer and BitMEX co-founder argued in his Substack essay on Monday that Treasury interventions in the bond market can function as a form of “money printing” by increasing the liquidity available to financial markets. 

Why Hayes Sees Treasury Moves As ‘Money Printing’ Machines

Hayes said that Bitcoin had bounced off lows after Bessent’s intervention in the dollar-yen market and an increase in Treasury buyback notional.