Bitcoin Surges Past $80,000 as Bull Market Call Echoes through Crypto Markets

Bitcoin's price surge above $80,000 has been hailed as the start of a new bull market by Arthur Hayes. According to him, this development is linked to Treasury bond buybacks and possible cash deployment from the Treasury General Account.

The increase in long-end liquidity-support buybacks from $2 billion to at least $4 billion per operation will start on September 9 and run through November 4. Hayes believes that these purchases will add liquidity in dollars, favoring scarce assets like Bitcoin.

Bitcoin's price has gained 28% in August and is heading for its strongest month since November 2021. The rally has also been supported by fresh demand for exchange-traded funds (ETFs), with U.S.-listed Bitcoin ETFs attracting $337.56 million on August 24, marking a sixth straight session of net inflows.