Pantera's Dan Morehead Calls Bessent's Bond Buyback a ‘Bluff' That Backfired

Pantera Capital founder Dan Morehead has characterized the US Treasury Department's expanded bond buyback program as an ineffective bluff that exposed systemic fiscal vulnerabilities rather than resolving them. Speaking on Bloomberg Crypto, Morehead explained that Treasury Secretary Scott Bessent's decision to double buybacks to at least $4 billion per operation was dwarfed by the approximately $2 trillion in debt the government must issue annually, highlighting severe sovereign debt pressures. Morehead directly linked Bitcoin's macroeconomic resilience and its 26% gain in August to these growing debt concerns. August marked Bitcoin's strongest monthly performance since late 2025 and its first positive August since 2021, with prices briefly exceeding $81,000 before settling near $77,258. Despite recent market headwinds from hawkish Federal Reserve remarks at Jackson Hole, Morehead maintained a bullish outlook anchored in Pantera's four-year cycle models. He anticipates the ongoing pullback will conclude toward the end of the year, setting the stage for a new two-to-three-year upswing.