Bitcoin Bull Market Underway Amid Treasury Buyback Boost

Arthur Hayes, co-founder of BitMEX and CIO at Maelstrom, claims that a new bull market for Bitcoin has begun. The catalyst for this prediction is the U.S. Treasury's decision to double the maximum size of certain long-end liquidity-support buybacks to $4 billion per operation between September 9th and November 4th.

The move is intended to add dollar liquidity and reduce pressure on long-term yields, according to the Treasury. However, Hayes argues that it will have a more significant impact, making risk assets comparatively more attractive and encouraging capital to flow into Bitcoin.

Bitcoin's price surged above $80,000 after the announcement, with some attributing the rally to the expected increase in dollar liquidity. While the exact cause of the rally remains unproven, Hayes believes that the Treasury's buybacks will continue to support the cryptocurrency's price in the coming months.