Arthur Hayes, BitMEX co-founder, asserts that Bitcoin has entered a new bull market, arguing that US Treasury Secretary Scott Bessent is preparing to inject more dollar liquidity through Treasury market operations. He notes that policymakers tend to get nervous when the 10-year Treasury yield approaches 5%, as it increases borrowing costs for mortgages and corporate and consumer debt. Hayes points out that between December 2023 and January 2025, Fed Repo program balances fell from approximately $2.5 trillion to $100 billion, representing a $2.4 trillion liquidity injection that benefited Bitcoin and the Nasdaq 100. Bitcoin recently crossed $80,000 for the first time since May, posting a jump of more than 23% over seven days, while remaining approximately 37% below its all-time high of over $126,000.
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