Hayes Sees Bitcoin Rising as US Treasury Expands Bond Buying

Arthur Hayes predicts that Bitcoin will continue to rise as he watches the US Treasury's bond buying program.

In his latest blog, 'Same Same But Different', Hayes says that Scott Bessent, the current US Treasury Secretary, is using a similar approach to Janet Yellen's when she was in office. According to Hayes, both officials are closely watching the 5% level for 10-year bond yields.

Hayes believes that the increase in bond buying will lead to an expansion of dollar liquidity, which could push up the prices of assets like Bitcoin. He notes that Yellen and Bessent have both expressed concerns about the potential impact of rising interest rates on the economy.

In particular, Hayes points out that the 10-year Treasury yield is a key indicator for many types of loans and debts. If it were to rise above 5%, he says, it could lead to higher borrowing costs and slower economic growth.