Hayes: Stay Long Stocks, Gold, Bitcoin Amid Treasury's Debt Buyback Expansion

BitMEX co-founder Arthur Hayes believes that investors should be long on stocks, gold, and Bitcoin in light of recent market developments. He points to the US Treasury's decision to double its debt buybacks as a key driver behind this trend.

The expansion of debt buybacks is an example of soft yield curve control, where central banks or Treasuries inject liquidity into markets without explicitly setting a target for bond yields. Hayes sees this move as a continuation of Janet Yellen's policy under the Biden administration and argues that it will lead to a continued shift away from fixed-income investments.

'You're an idiot if you're not long stocks, long gold, long Bitcoin, long the market,' Hayes said during his appearance on Crypto Banter. He believes that as governments continue to intervene in markets through debt buybacks and other means, investors will increasingly turn to assets with scarce supply, such as equities and cryptocurrencies.

Hayes' views are supported by recent market performance, which has seen the 30-year Treasury yield fall, Bitcoin break above key moving averages near $70,000, and equities rise. He sees this trend continuing as authorities continue to prioritize debt sustainability over free-market pricing of yields.