Arthur Hayes: US Treasury Secretary Is Replicating Yellen's Liquidity Injection Strategy, Bitcoin Stands to Benefit

Odaily News, Maelstrom CIO Arthur Hayes stated in his latest article that US Treasury Secretary Bessent is adopting a liquidity injection strategy similar to that of former Treasury Secretary Yellen, by increasing long-term Treasury bond buybacks and other measures to suppress yields and release dollar liquidity into the market.

Hayes noted that at the end of 2023, Yellen released approximately $2.4 trillion in liquidity by increasing short-term Treasury issuance, which was followed by a significant rally in Bitcoin. Now, Bessent faces similar pressure on long-term Treasury yields, and it is expected that he may further expand Treasury buybacks and utilize funds from the Treasury General Account. Hayes believes that regardless of the pace at which these measures are implemented, they will ultimately increase dollar liquidity in the market and drive Bitcoin's continued upward movement.