Hayes Sees Treasury Buybacks as Catalyst for Crypto Boom

Arthur Hayes, former CEO of BitMEX and current chief investment officer at Maelstrom, is urging investors to 'back up the truck and buy crypto with both hands' due to potential dollar liquidity increases from U.S. Treasury Secretary Scott Bessent's expanded bond buybacks.

In his Substack newsletter, Hayes argues that this move can act as a form of 'money printing' by increasing liquidity in financial markets, which could benefit risk assets like cryptocurrency.

Hayes cites the Bank of Japan's yield-control approach, where it would buy 10-year and longer-dated Treasuries without limit whenever yields rise above 5%, as an ideal scenario for Bitcoin's success. He notes that Bessent has only announced a 'paltry' $20 billion increase in long-end total debt, which may not be enough to suppress long-term yields.

Bitcoin has already seen its best week in daily gains since 2023, rising over 23%, following the announcement of Treasury buyback policy. Hayes believes that Treasury debt management decisions can act as a form of indirect money printing by returning liquidity to financial markets.