Bitcoin could reach $100K amid US Treasury buybacks

BitMEX (CRYPTO:BMEX) co-founder Arthur Hayes suggests Bitcoin (CRYPTO:BTC) may soon exceed $100,000, citing potential liquidity injections from US Treasury buybacks as a key catalyst.

“Seriously fam, this might be the last chance you have to buy $BTC post-halving below $100K,” described Hayes, referring to the buybacks as a “Bazooka” for Bitcoin’s price trajectory.

Treasury buybacks involve repurchasing bonds to manage debt and stabilise rates, often increasing market liquidity.

Bitcoin recently climbed above $87,700, its highest level in three weeks, as the US Dollar Index fell to March 2022 lows. 

André Dragosch of Bitwise noted Bitcoin’s rise aligns with dollar weakness, while Bitget Research’s Ryan Lee linked the momentum to technical factors like a descending wedge breakout.

Analysts emphasise Bitcoin’s growing appeal as a hedge against currency devaluation.

Jamie Coutts of Real Vision predicts Bitcoin could reach $132,000 by year-end if fiat money supply growth continues.

The correlation with gold, another traditional safe haven, has strengthened amid macroeconomic uncertainty.

Global trade tensions pose risks, with tariffs dampening risk appetite until US-China negotiations progress.

However, institutional adoption remains robust, as seen in Metaplanet’s $414 million Bitcoin holdings and UK firms’ acquisitions.

Hayes’ remarks follow Bitcoin’s 33% post-halving rally, driven by supply constraints and institutional inflows.

Market observers note that Treasury buybacks could accelerate Bitcoin’s four-year cycle, compressing its projected peak timeline.

Technical indicators suggest Bitcoin may test $90,000 resistance soon, supported by rising trading volumes.

The weakening dollar and monetary expansion policies continue to reinforce Bitcoin’s role as a store of value, according to analysts.

While short-term volatility persists, long-term projections remain bullish.

Unchained’s Joe Burnett previously forecasted Bitcoin surpassing $1.8 million by 2035 if it captures a significant share of gold’s market capitalisation.

Institutional activity, including bond-funded purchases and corporate treasury strategies, underscores Bitcoin’s maturation as an asset class. 

As macroeconomic conditions evolve, analysts anticipate heightened volatility but sustained upward pressure on Bitcoin’s price.

At the time of reporting, the Bitcoin (BTC) price was $87,542.18.