Bitwise CIO Matt Hougan pointed to US Treasury Secretary Scott Bessent’s evolving bond-market approach as reinforcing Bitcoin’s hard-asset narrative. Bessent first outlined Treasury buybacks of long-dated bonds rising from $2 billion to $4 billion, yet longer-term yields failed to stay lower: the 30-year yield briefly moved from 5.29% to 5.20% and the 10-year from 4.70% to 4.65% before retracing. He then floated on CNBC that buybacks could exceed $4 billion, while separate reports suggested the nearly $1 trillion Treasury General Account could be tapped to fund larger operations, shifting the debate within roughly 48 hours from $2 billion to a potential $1 trillion backstop for long bonds.
Hougan also cited Bessent’s campaign against Iran’s financial links, described on Monday as an “economic onslaught” and “the financial equivalent of D-Day”, alongside the 2022 freeze of Russia’s foreign-exchange reserves. The episode underscored the leverage embedded in the dollar-based system and, in his framing, the appeal of monetary assets outside single-government control. Bitcoin was trading at $78,390, down 1% over 24 hours at the time of writing.
Strategic Trading Opportunities Amid Treasury Market Instability
We advise derivative traders to prepare for intense market swings in the coming weeks by targeting long-dated Bitcoin call options. The Treasury’s aggressive push to suppress long-term yields using the $1 trillion Treasury General Account is creating deep instability in the bond market. As traditional yields like the 10-year resist suppression and bounce back toward 4.70%, capital will likely flee to scarce, alternative assets.
This situation closely mirrors Japan’s historic, failed attempts at yield-curve control, which ultimately weakened their domestic currency. With the U.S. national debt rapidly climbing toward $40 trillion in 2026, the structural risk to the dollar is higher than ever. We should use long futures contracts to hedge against this looming debt crisis, following the lead of major macro investors who are abandoning sovereign debt.
Bitcoin Derivatives and Defensive Positioning
Additionally, the escalating weaponization of the dollar is forcing global financial players to look for neutral, censorship-resistant collateral. Bitcoin’s derivatives market is already reflecting this shift, with CME open interest hovering near record highs of over $11 billion. We can exploit this trend by trading short-term weekly options to capture sudden, geopolitically driven price spikes.
With Bitcoin currently consolidating around the $78,000 level, implied volatility is priced attractively for buyers. We recommend setting up bull call spreads to capture the upside of the Treasury’s fiscal interventions while keeping our downside protected. This approach positions us perfectly for the next leg of the global monetary reshuffle.
