BitMEX co-founder Arthur Hayes links U.S. Treasury buybacks to increased dollar liquidity, fueling Bitcoin’s new bull market phase.
Bitcoin has entered a new bull market driven by U.S. Treasury buybacks expanding dollar liquidity, according to BitMEX co-founder Arthur Hayes. He cited Treasury Secretary Scott Bessent’s move to increase longer-dated Treasury buybacks as a key catalyst, potentially deploying roughly $1 trillion from the Treasury General Account.
Hayes outlined two scenarios: an aggressive push toward yield-curve control if the 10-year yield breaches 5%, or a steady expansion of buybacks. Both paths are expected to inject liquidity, benefiting risk assets like Bitcoin and Ethereum.
Maelstrom, Hayes’ firm, has shifted to “maximum risk,” with heavy exposure to BTC, ETH, and related tokens ENA and ETHFI. Hayes warned of heightened volatility despite the bullish outlook.