The Treasury confirmed that starting September 9, 2026, the maximum size for specific liquidity-support buybacks will rise to at least $4 billion per operation. Hayes, writing in his essay Same Same But Different, suggests this move will suppress long-term yields and encourage capital migration into crypto. While Bitcoin rallied from sub-$65,000 levels to an intraday high exceeding $81,000, market analysts note that other factors—including robust ETF inflows and short liquidations—likely fueled the rapid ascent alongside the Treasury announcement.
In section Cryptocurrency
Arthur Hayes bets on Bitcoin bull run as Treasury expands buybacks
BitMEX co-founder Arthur Hayes declared the start of a new Bitcoin bull market, pointing to the U.S. Treasury’s decision to double its long-end bond buyback caps. As Bitcoin surged past $80,000, Hayes argued that the liquidity-support measures effectively act as a catalyst for risk assets, despite Treasury officials framing them as debt management.
Treasury officials maintain that these operations are designed to improve market liquidity rather than function as monetary stimulus. The program, which authorizes up to $38 billion in liquidity-support purchases this quarter, remains distinct from the New York Fed’s separate $10 billion reserve-management efforts. While Hayes has positioned his Maelstrom portfolio for maximum risk, he acknowledges that the current buyback scale is modest relative to the broader debt market. With the next policy milestone set for September 9, investors remain focused on whether these debt-management operations will sustain the momentum or if the rally requires more significant liquidity injections from the Treasury General Account.
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