- Bitcoin surged 20% since mid-August, adding roughly $300 billion to its market capitalization in hours as the debasement trade against the U.S. dollar returned.
- Arthur Hayes of Maelstrom Fund expects continued money printing and predicts bitcoin could reach $250,000, citing Treasury Secretary Scott Bessent’s bond market support.
- Approximately $1.9 billion flowed into U.S. spot bitcoin ETFs last week, with record short liquidations amplifying the rally.
- Analysts at Xapo Bank note that the Treasury’s decision to increase long-dated bond buybacks signals greater sensitivity to debt market stress, reinforcing bitcoin’s case as a hedge.
Since mid-August, the Bitcoin Price has rocketed 20% higher, breaking out of a prolonged slump as the debasement trade returns and investors bet against the U.S. dollar. The surge added roughly $300 billion to bitcoin’s market capitalization within hours, with traders now bracing for fresh U.S. money printing.
Arthur Hayes, cofounder of Bitmex and head of Maelstrom Fund, told podcaster Anthony Pompliano to “get ready, start buying.” Hayes said: “I think that we’re not going to get a 2008-style, massive credit event but we’re just going to continue print and print and print and you’re going to look up and see bitcoin at $250,000.”
He pointed to Treasury Secretary Scott Bessent’s promise of bond market support designed to lower borrowing costs. “If the market doesn’t do what [Bessent] wants it to do and it keeps edging up and testing him, then he’s going to have to keep printing,” Hayes added. Reports indicate Bessent could use the Treasury’s near $1 trillion General Account to fund bond purchases, echoing former Treasury Secretary Janet Yellen’s $2.4 trillion liquidity injection.
The rally coincided with strong investor demand for bitcoin ETFs. Approximately $1.9 billion flowed into U.S. spot products last week, while record short liquidations added further momentum. Gadi Chait, investment manager at Xapo Bank, said bitcoin’s weekly advance was its strongest since March 2023. “The Treasury’s decision to increase long-dated bond buybacks added a further macro catalyst,” Chait noted, adding that rising debt fuels concerns about currency debasement, making bitcoin’s fixed supply increasingly relevant.
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