Pantera’s Dan Morehead Calls Bessent’s Bond Buyback a ‘Bluff’ That Backfired
Pantera Capital founder Dan Morehead calls the US Treasury’s expanded bond buyback plan a bluff that backfired. He ties Bitcoin’s 26% August rally on to it.
Speaking on Bloomberg Crypto, Morehead argued buyers noticed by Treasury Secretary Scott Bessent’s transfer virtually instantly.
The Buyback That Backfired
On August 19, Bessent doubled the Treasury’s bond buybacks to ease borrowing prices. The program lets the federal government repurchase its personal debt to affect bond yields. The cap rose to at the very least $4 billion per operation.
Morehead said the rise appeared tiny towards the $2 trillion in bonds the Treasury should promote yearly. Highlighting the hole, he argued, solely uncovered the depth of the debt downside relatively than fixing it.
“It backfired as a result of everybody might see they’re off by three orders of magnitude.”
Dan Morehead, Pantera Capital founder, Bloomberg
Bitcoin’s Best August Since 2021
Bitcoin climbed 26% in August, its strongest month since November 2025. It marked the primary internet constructive August since 2021, briefly topping $81,000. BTC traded close to $77,258 at press time, per BeInCrypto information.
Fed Chair Kevin Warsh struck a different tone at Jackson Hole. He argued stronger progress might raise charges and scale back the enchantment of yield-free belongings like bitcoin. Both gold and Bitcoin retreated after the speech, giving Morehead’s bullish debt thesis its clearest pushback but.
Morehead known as crypto a macro commerce that advantages each time governments maintain increasing debt. He pointed to Pantera’s name that Bitcoin would peak at $117,542 on August 10, 2025, a forecast that held. He argued the identical four-year cycle mannequin now factors to a different leg greater as soon as this pullback ends.
Bitcoin peaking on the precise day Pantera known as years earlier means the present pullback matches the identical script, in line with Morehead. He stated the sample has held for the 13 years his fund has tracked it.
Morehead expects a new upswing to start close to the tip of this 12 months, adopted by one other two to 3 12 months run.
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