Arthur Hayes argues US Treasury buybacks could inject liquidity, boosting Bitcoin amid rising yields and market sensitivity to dollar flows.
Bitcoin has entered a new bull market phase as US Treasury bond buybacks inject additional dollar liquidity into financial markets. BitMEX co-founder Arthur Hayes cited a $20 billion increase in planned long-term bond buybacks as a catalyst, with potential for larger interventions if yields climb further.
The move mirrors late 2023, when Treasury bill issuance released roughly $2.4 trillion from the Fed’s reverse repo facility. Bitcoin’s recent rally following the Aug. 19 buyback announcement underscores its sensitivity to liquidity shifts, Hayes noted.
By repurchasing older bonds, the Treasury aims to support prices and suppress yields, a strategy that could further loosen financial conditions if expanded.