Treasury Buybacks Trigger New Bitcoin Bull Market, Says Arthur Hayes

Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, believes that a new Bitcoin bull market has begun. He attributes this to the U.S. Treasury's decision to expand its bond buyback program.

The Treasury doubled the maximum size of certain long-end buybacks from $2 billion to at least $4 billion per operation, starting September 9. This move is expected to improve liquidity in older securities and manage the Treasury's cash position.

Hayes sees this as a form of monetary stimulus that will push up bond prices and pull yields down. With lower yields, he believes risk assets like Bitcoin become more attractive.

As a result of the announcement on August 19, Bitcoin rose from below $65,000 to above $80,000 by August 25, with some intraday highs reaching over $81,000.