Treasury Buybacks Spark Bitcoin Bull Market, Warns of Volatility Ahead

Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, believes that Bitcoin has entered a new bull market due to the US Treasury's plans to inject more dollar liquidity into financial markets.

In his latest essay, 'Same Same But Different,' Hayes argues that Treasury Secretary Scott Bessent's expansion of longer-dated bond buybacks represents indirect money printing.

Hayes expects the government to deploy larger interventions if Treasury yields continue rising, and notes that Bitcoin rallied after Bessent announced additional buybacks on August 19.

He describes Bitcoin as a 'global liquidity smoke alarm' that often signals a policy shift before traditional markets fully recognize it, and suggests that investors who focus exclusively on Federal Reserve rate decisions risk overlooking the Treasury's influence.