Arthur Hayes Says Treasury Buybacks Are Fueling a Bitcoin Bull Market

Arthur Hayes, co-founder of BitMEX, argues that the US Treasury's expanded bond buyback program is catalyzing a new Bitcoin bull market. Following the August 19 announcement by Treasury Secretary Scott Bessent, which increased buyback limits from $2 billion to at least $4 billion per operation between September 9 and November 4, Bitcoin surged from $64,000 to surpass $80,000, touching intraday highs above $81,000. Hayes views the buybacks of long-dated bonds as a mechanism that depresses yields and injects liquidity into risk assets. The crypto market's upside momentum was further bolstered by institutional demand and market dynamics. US spot Bitcoin ETFs recorded $517 million in net inflows on August 19, marking the highest single-day influx since May, while over $4 billion in short positions were liquidated. Hayes announced that his fund, Maelstrom, has shifted to maximum risk exposure across Bitcoin and Ether, maintaining a price target of $126,000 for Bitcoin by year-end 2026 as expanded buyback operations officially commence.