VanEck Proposes Bitcoin-Linked Treasury Bonds to Offset $14 Trillion U.S. Debt: Bitcoin to Hit $90K?

VanEck has unveiled a groundbreaking proposal to issue Bitcoin-linked Treasury bonds, called “BitBonds,” as a strategic tool to manage the U.S. government’s massive $14 trillion debt. This hybrid debt instrument would provide 10% Bitcoin exposure alongside 90% traditional U.S. Treasury bonds. By blending Bitcoin price with U.S. Treasury bonds, the proposal aims to meet sovereign funding needs while giving investors a hedge against inflation. The initiative was discussed at the Strategic Bitcoin Reserve Summit. It highlights the potential to create a new category of sovereign debt in the crypto market.

VanEck’s Bitcoin-Linked Treasury Bond Proposal

Matthew Sigel, VanEck’s head of digital assets research, introduced the concept of BitBonds as a solution for managing sovereign funding needs. The bonds would consist of 10% Bitcoin exposure, funded by the bond sale proceeds, and 90% traditional US Treasury backing. At maturity, investors would receive the value of the US Treasury portion and any Bitcoin gains. Sigel called the proposal “an aligned solution for mismatched incentives.”

BitBonds are structured to attract investors seeking protection from dollar debasement. The bonds offer a base level of risk-free return while capturing Bitcoin’s upside potential. Investors’ breakeven for BitBonds depends on Bitcoin’s compound annual growth rate (CAGR). For example, for bonds with a 4% coupon, the breakeven BTC CAGR is 0%, but for lower-yielding bonds, the breakeven is higher.

Sigel also explained that issuing $100 billion in BitBonds with a 1% coupon could save the US government $13 billion over the life of the bond, even in scenarios where Bitcoin does not perform well. “BTC upside just sweetens the deal. Worst case: cheap funding. Best case: long-vol exposure to the hardest asset on Earth,” Sigel added.

Bitcoin Price Analysis of April 16

The trading day of April 15th started with bullish momentum, sparked by a golden cross on the MACD line. The price moved upward, with an overbought situation at 08:15 UTC, followed by another at 13:45 UTC. This led to resistance at $86,497.60. Shortly after, the MACD line displayed a death cross, signaling a shift to a downward channel. The price then fluctuated downward, with a continuous oversold situation on the RSI. On April 16th, the trend continued downward, marked by an oversold condition at 00:55 UTC. 

Chart 1, analyzed by ShwetaCW, published on TradingView, April 16, 2025

As shown in the BTC/USDT chart, the price found support at $83,113.67, which held briefly. Then, the MACD line showed a golden cross, suggesting a potential reversal to an upward trend. This resulted in a price bounce. According to Bitcoin price prediction, if the bullish momentum carries on, it could break the current resistance at $86,497.60. However, if the trend reverses, the support at $83,113.67 could be broken, aiming for a move toward $80,000. The market is in a volatile state, and watching for either a break above resistance or below support will be key to the next move.

Bitcoin Price Outlook: What’s Next?

VanEck’s Bitcoin-linked Treasury bond proposal could reshape the crypto market. It offers new ways to manage the U.S. debt while attracting investor interest. As for Bitcoin price, the ongoing volatility presents risks and opportunities. If bullish momentum continues, it could break past $86,000, potentially reaching new highs. The Bitcoin Reserve could see increased interest as this innovative bond structure gains traction.