Arthur Hayes, Chief Investment Officer at Maelstrom Fund, told Benzinga on Thursday that rising oil prices and treasury yields could prove positive for Bitcoin (CRYPTO: BTC).

What Treasury Yields Spike Amid War Means

Hayes pointed out the surge in yields on the 10-year Treasury note, which is not typical in a “risk-off” scenario. The yield on the supposedly low-risk investment, for context, climbed to a 3-week high of 4.143% as the Middle East war pushed oil prices higher while dragging down stocks and cryptocurrencies.

Hayes argued that the surge in oil prices has disrupted “normal investor behavior.”

The BitMEX founder further noted that as the 10-year Treasury price falls, the MOVE Index, which tracks the volatility in the U.S. Treasury bond market, rises.

Win-Win For Bitcoin?

“Historically, over the past 5 years, if the MOVE index is >130, there is likely some sort of monetary bailout rolled out by the U.S. Government,” Hayes said. As of this writing, the index stood at 74.52.

He contended that elevated yields would continue to drive volatility higher, leading to increased money printing.

“And then the money printing will begin in some way, shape or form, which benefits Bitcoin,” he added.

Hayes’s Thesis On Monetary Expansion

Hayes’ observations come amid the escalating Middle East tensions. Earlier this week, he warned that prolonged U.S. military engagement could force the Federal Reserve to increase money printing to finance the war, ultimately pushing Bitcoin prices upward.

Hayes has consistently stressed the importance of fiat liquidity growth, advising traders to consider the expectations and realities of money printing when setting targets for Bitcoin.

He also reiterated his $250,000 Bitcoin target for 2026 and projected $500,000 to $750,000 by the end of 2027.

Price Action: At the time of writing, BTC was exchanging hands at $71,139.31, down 1.71% in the last 24 hours, according to data from Benzinga Pro.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo Courtesy: Hi my name is Jacco on Shutterstock.com