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Crypto

Stablecoins cannot fill U.S. long-term Treasury demand gap despite $73.3 billion

Rising demand for stablecoins can help the U.S. government finance short-term Treasury bills but cannot address weak demand for long-term debt, with maturity the key constraint. U.S. stablecoin reserve rules tie funds to assets with maturities of 93 days or less, excluding newly issued 10-year and 30-year Treasuries. The Treasury has separately expanded long-term debt buybacks to support market liquidity, while evidence of a direct link to stablecoin reserves or bitcoin prices has not been confirmed.

Crypto

Arthur Hayes says U.S. Treasury liquidity expansion to drive bitcoin bull market

Arthur Hayes said an expansion in U.S. Treasury bond buybacks could lead to a bitcoin bull market, viewing it as a signal of rising liquidity. He compared the move to 2023 actions under former Treasury Secretary Janet Yellen that boosted liquidity and helped bitcoin rebound after the FTX collapse. Hayes said rates have not yet clearly stabilised and noted yields can pressure the economy. He expects further liquidity steps and warned against leveraged trading.

Crypto

U.S. Treasury considers using $950 billion cash balance for Treasury buybacks, bitcoin seen benefiting

The U.S. Treasury is reviewing whether to use the government’s General Account balance held at the Federal Reserve as funding for long-term Treasury buybacks. Using about $950 billion could help stabilise long-term rates and influence the bitcoin market. After the Treasury outlined plans to expand buybacks, bitcoin rose about 23% on the week to around $79,000, alongside inflows to U.S. spot bitcoin ETFs. Treasury market scepticism persists over the impact on long-term yields.