According to a policy framework published by the Bitcoin Policy Institute, the US Treasury could potentially allocate $200 billion to Bitcoin (BTC) purchases through a proposed $2 trillion issuance of “Bitcoin-Enhanced Treasury Bonds.”

The bond structure, labeled “₿ Bonds,” is designed to refinance a portion of the $14 trillion in federal debt maturing over the next three years.

Each bond would allocate 90% of proceeds to conventional government financing and 10% toward BTC acquisition, enabling the creation of a Strategic Bitcoin Reserve without requiring direct taxpayer funding.

Lower rates to get Bitcoin exposure

The proposed ₿ Bonds would offer a 1% annual interest rate, well below the current 10-year Treasury yield of approximately 4.5%. In exchange for accepting lower fixed returns, investors would gain exposure to Bitcoin-linked upside through a structured payout at bond maturity. 

This payout would include full principal repayment, fixed interest, and a performance-based Bitcoin-linked component. Investors would receive 100% of BTC gains up to a compounded annual return threshold, then 50% of any additional gains. The government would retain the remaining share.

Performance-based modeling indicates that, even if Bitcoin prices remain flat over the 10-year maturity, the US will save approximately $354 billion in present value terms after subtracting the $200 billion BTC allocation from the projected $554.4 billion in interest savings. 

The framework highlighted that if Bitcoin appreciates in line with historical medians, the program could offset significant portions of the national debt by 2045.

Additionally, the ₿ Bond proposal includes tax-exempt treatment for interest payments and Bitcoin-linked gains, positioning the instruments as a retail-friendly savings product. With estimated participation by 132 million US households, the average per-household investment could reach $3,025. 

The proposal outlined legislative and regulatory frameworks to codify the tax benefits, with administration by the Treasury and the Internal Revenue Service (IRS).

For institutional investors, ₿ Bonds present a compliant channel to gain Bitcoin exposure while preserving the security profile of Treasury securities. Approximately 80% of ₿ Bonds would be absorbed by institutional and foreign buyers, with the remaining 20% allocated to US households.

Implementation roadmap and risk considerations

The rollout includes a three-phase implementation strategy: a $5 billion to $10 billion pilot program, a legislative expansion phase, and full integration into the Treasury’s standard issuance calendar. 

The program includes risk management protocols to cover Bitcoin pricee volatility, market execution, operational security, and regulatory classification. To mitigate market disruption, the government would acquire the $200 billion in Bitcoin through staggered dollar-cost averaging and diversified execution channels. 

The brief also detailed custody standards and coordination with federal regulatory bodies to clarify the bonds’ classification under securities, commodities, and tax law.

The proposed $200 billion in BTC purchases would fund a Strategic Bitcoin Reserve established by President Donald Trump via an executive order in March 2025. 

The order classified Bitcoin as “digital gold” and authorized the development of budget-neutral strategies to expand national holdings. BTC recovered through forfeiture will fund the initial reserves. The ₿ Bond program builds directly on this directive, scaling reserves through public bond issuance without reliance on additional tax revenue.

The policy brief noted that the reserve would function as a store of value, with assets held in secure custody and excluded from active trading. Custody plans include multi-signature cold storage and dedicated security infrastructure managed by a specialized Treasury unit.

Long-term implications

Modeling scenarios based on historical Bitcoin performance suggests that a Bitcoin reserve could accumulate trillions in value.

Assuming a median historical compound annual growth rate of 53%, the reserve’s BTC holdings could surpass $14 trillion in value by 2035, with the government retaining a $6.5 trillion share. 

Even at the 10th percentile of Bitcoin growth, the reserve’s government-held value could surpass the current US gold reserves.

The ₿ Bond initiative is framed as an alternative to traditional austerity or tax-based debt solutions. It enables long-term fiscal stabilization through asset appreciation, potentially reducing or offsetting future federal debt obligations.

The document also stated that the proposal positions the US as a global leader in integrating Bitcoin into sovereign finance, with implications for financial resilience, debt management, and digital asset market development.

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Amid the Bitcoin price struggles, crypto analyst BitQuant has pushed back against the idea that the top is in and instead provided a bullish outlook for the flagship crypto. He also remarked that he would reveal when the “real top” is in.  

Analyst Affirms Top Isn’t In Yet Despite The Bitcoin Price Stuggles

In an X post, BitQuant was confident as he assured that the top isn’t in yet despite the Bitcoin price struggles. He noted that during the last cycle, market participants argued that $60,000 didn’t look like a top, even though it had a perfect textbook structure of one. Now, there is a panic although this top structure has yet to form in this market cycle. 

The analyst stated that he understands the bearish sentiment but that this is likely because some market participants haven’t experienced the bull phase yet. He affirmed that when the real top is in for the Bitcoin price, and there is a 25% pullback, he will post his accompanying chart again. The analyst added that market participants would know for sure, without any guidance, whether the top is in or not.

Crypto analyst Kevin Capital also suggested that the top isn’t in yet for the Bitcoin price. However, he admitted that the crypto is in a major correctional phase in the market. The analyst remarked that these corrections take time and asked market participants to stay patient while monitoring the macro data and monetary policy updates. 

Kevin Capital mentioned that much can be done in the meantime and claimed that this is what crypto is like. He added that most of the Bitcoin price gains are accomplished in a two-week period every year. Other times, the flagship crypto simply trades sideways or witnesses significant declines. 

BTC Still Risks Dropping To As Low As $70,000

In a recent analysis, Kevin Capital predicted that the Bitcoin price could still drop to as low as $70,000. He stated that if BTC loses the golden pocket at $81,000 and follows through with that measured target, then the $70,000 to $73,000 range, which he has outlined on the higher time frames, would be the “Measured Move” target. 

The analyst also remarked that there are lots of factors this week that will influence price action. One is Donald Trump’s tariff implementation on April 2nd, which he suggested could be a buy-the-news event in the sense that BTC has also priced into the effects of the proposed tariff and could surge once the event occurs. 

Kevin Capital also highlighted other macro factors, such as the labor market data at the end of the week. Meanwhile, the US Treasury run-off will decrease from $25 billion to $5 billion starting April 1st. The analyst admitted that it remains uncertain whether these events have an immediate sentiment effect or even affect the sentiment at all. 

At the time of writing, the Bitcoin price is trading at around $82,000, down almost 2% in the last 24 hours, according to data from CoinMarketCap.