Bitcoin Bull Market Accelerates as Treasury Bond Buybacks Fuel $80K Surge
Bitcoin has spent the past week doing something it has not done since spring: forcing traders to ask whether a genuine turn has begun. The token pushed above $80,000 on August 25, and BitMEX co-founder Arthur Hayes says the answer is simple. In an essay published that day, Hayes argued that a Bitcoin bull market is already underway, and that the trigger wasn’t a regulatory breakthrough or a Fed rate cut — it was a technical adjustment to how the US Treasury buys back its own bonds.
Key takeaways
- Treasury Secretary Scott Bessent raised the long-end bond buyback limit from $2 billion to at least $4 billion per operation, effective between September 9 and November 4, 2026.
- Bitcoin jumped roughly 8.7% immediately after the August 19 announcement, climbing from around $64,000 toward $69,750–$71,000, then rallied further to top $80,000 by August 25.
- US spot Bitcoin ETFs pulled in about $517 million in net inflows on August 19, the strongest single-day intake since early May.
- More than $4 billion in crypto short positions were liquidated as the rally accelerated.
- Hayes points to the Treasury General Account, holding roughly $940 billion to $1 trillion, as a potential source of further liquidity if drawn down for future buybacks.
Arthur Hayes Links Treasury Buybacks to a New Bitcoin Bull Market
Hayes’s essay, titled Same Same But Different, ties Bitcoin’s latest run directly to the Treasury’s decision to buy back more of its own longer-dated debt. He calls it the same playbook, dressed differently, that he says powered Bitcoin’s rally in late 2023 — and he argues it’s already repeating.
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