Arthur Hayes Advocates for Stocks, Gold, and Bitcoin Amid Treasury Buyback Expansion

Arthur Hayes, co-founder of BitMEX, has made a strong case for investors to consider risk assets such as stocks, gold, and Bitcoin in light of recent actions by the US Treasury. During a discussion with Crypto Banter host Ran Neuner, Hayes emphasized that avoiding these assets would be unwise, particularly after the Treasury's decision to double the size of its debt buybacks.

Hayes characterized the Treasury's buyback expansion as a form of soft yield curve control, which aims to cap bond yields without formally announcing a target. He argued that this move injects liquidity into the market, similar to previous interventions under former Treasury Secretary Janet Yellen.

“You’re an idiot if you’re not long stocks, long gold, long Bitcoin, long the market,” Hayes stated, linking the Treasury's actions to a surge in market activity. Following the announcement, the 30-year Treasury yield fell, Bitcoin surpassed key moving averages near $70,000, and equities experienced a notable rise.

Hayes believes that as governments suppress bond yields, private capital will shift away from fixed income investments in search of alternatives, driving demand for scarce assets like Bitcoin and gold. He noted that this trend mirrors the Bank of Japan's long-term yield curve control strategy.

With the Federal Reserve maintaining steady rates and additional support measures on the table, Hayes sees a clear pro-asset price bias in current policies. He remains heavily invested in both Bitcoin and Ethereum, advocating for a strategy focused on holding scarce assets as authorities continue to print money and intervene in the markets.

“I mean, I’ve been risk-on for a few weeks now,” Hayes remarked, indicating his significant exposure to cryptocurrencies. His insights underscore a broader thesis that in the current economic climate, staying under-allocated to risk assets could be the riskiest choice of all.

New Insights from Ray Dalio

Ray Dalio, founder of Bridgewater Associates, has recently warned about a looming US debt crisis, advocating for a shift from bonds to gold and Bitcoin as protective measures. In a LinkedIn post dated August 21, 2026, he highlighted the concerning financial state of the US government, which is currently spending approximately 40% more than its revenue. With projected revenues around $5.5 trillion and expenses near $7.5 trillion, Dalio noted that if the government were a business, its debt service payments would amount to about $11 trillion, equating to roughly 200% of annual revenue.

Dalio emphasized that the government's financial condition is at a critical inflection point, suggesting that without immediate action, the debt could escalate to unmanageable levels. He proposed a three-part strategy to reduce the deficit to 3% of GDP, which includes cutting spending, increasing tax revenue, and lowering interest rates simultaneously to avoid severe repercussions.

He estimated that a debt crisis could arise within one to five years, with a more precise prediction of three years if current trends continue. To mitigate risks, Dalio recommends that investors maintain a lower allocation in bonds and consider investing 10% to 15% of their portfolios in gold, along with a small allocation in Bitcoin.