BitBonds: the new face of crypto with Trump

In the midst of a global economy shaken by the domino effect of tariffs imposed by President Donald Trump, a revolutionary concept is taking shape in the United States: Bitcoin Bonds, or BitBonds. 

Proposed by the Bitcoin Policy Institute, these hybrid financial instruments could mark a turning point in the way governments manage public debt and, at the same time, in the future of Bitcoin. 

With inflation fueled by trade barriers and the Federal Reserve showing no intentions of reducing interest rates in the short term, 2025 is shaping up to be a challenging year for the markets, particularly for cryptocurrencies. 

However, the BitBonds emerge as an alternative solution capable of strengthening the American economy and the position of Bitcoin in the global financial context.

What are BitBonds?

BitBonds unite two seemingly distant worlds: the reliability of traditional bonds and the explosive potential of digital currency. The idea is simple yet innovative: raising capital for public or business projects, allocating 90% of the funds to operational goals and 10% to the purchase of Bitcoin.

Investors receive a fixed interest of 1% per annum – well below the rates of ordinary government bonds – in addition to potential gains linked to the growth of Bitcoin, with compound returns up to 4.5% on the crypto portion.

This structure meets the need for stability and growth, offering investors a secure return combined with direct exposure to Bitcoin, without having to directly manage digital assets.

How do BitBonds work?

Issuance and management of funds

The operational dynamics of BitBonds mirror those of traditional bonds with an additional crypto component. The issuer – which can be a government or a large company – raises funds through the issuance of the bonds. 90% of the proceeds are used for conventional purposes, such as financing infrastructure or managing public debt. The remaining 10% is instead used to purchase Bitcoin, stored in secure digital wallets under government control. 

During the duration of the bond, investors receive an annual interest of 1% and can benefit from any gains recorded by the price of Bitcoin, with a maximum limit of 4.5% per year on the portion allocated in crypto. The additional gains are often divided between the government and the investor.

A practical example

To understand the potential, consider a hypothetical BitBond of 100 million dollars. Of these, 90 million are used for public operating expenses, while 10 million purchase Bitcoin at an average price of 50,000 dollars per unit, thus obtaining 200 BTC. After years of maturation, if the price of Bitcoin doubles to 100,000 dollars, the value of the crypto share doubles to 20 million.

Investors perceive a maximum established return (for example, 14.5 million dollars in total), with any excess redistributed between the government and investors.

Bitcoin Bonds and the US debt crisis

A tool to lighten the weight of public debt

With a whopping 9 trillion dollars of federal debt maturing in the next 12 months and over 14 trillion within three years, the American government is seeking innovative tools to refinance the debt sustainably. BitBonds offer extremely low interest rates (1%), significantly lower than those of traditional government bonds, allowing for billion-dollar savings on annual debt servicing costs. Additionally, they strengthen the strategic position of the United States in digital assets, creating a true reserve in Bitcoin, protecting the economy from potential dollar devaluations, and positioning the country as a leader in the global digital transformation.

A political and economic opportunity

Politically, the Bitcoin Bonds fit into a discourse of financial modernization, consistent with a leadership oriented towards innovation and resilient global challenges. Economically, they prove to be a bridge between traditional finance and new technological instruments, offering a concrete response to the complex debt crisis and the needs of the bull and bear markets.

The impact on the price of Bitcoin

An unprecedented boost to the crypto market

In the absence of expansive monetary policies by the Federal Reserve, the cryptocurrency market risks running short of liquidity in the coming months. BitBonds could fill this gap. According to estimates by the Bitcoin Policy Institute, a large-scale issuance could raise up to 2 trillion dollars, allocating 200 billion for the direct purchase of Bitcoin.

To make a comparison, the Bitcoin ETF attracted investments of about 60 billion dollars in 2024, contributing to a 119% increase in the price of Bitcoin. Assuming a capital allocation three times this figure through BitBonds, the price of Bitcoin could theoretically exceed the threshold of 200,000 dollars, driven by massive institutional demand and implicit government support.

A new scenario for trading: CoinEx and leverage

With Bitcoin recently dropping into the range between 74,000 and 76,000 dollars, technical analysis and on-chain data suggest that the market is forming a potential support level. Large investors are taking advantage of the lower prices to accumulate BTC, a sign of a possible trend reversal.

 For traders with limited resources, platforms like CoinEx offer tools such as margin trading, allowing them to multiply their market exposure. By using 100 USDT and borrowing 400 USDT, it is possible to open larger positions and potentially take advantage of the market recovery to achieve greater gains. CoinEx promotes a simple and flexible experience, facilitating the transfer of funds between accounts and ensuring direct access to credit for more dynamic strategies.

Towards a new financial era

Bitcoin Bonds represent much more than a new type of investment product. They are configured as a revolutionary initiative capable of reconciling the refinancing needs of American public debt with the evolution of the cryptocurrency markets. By combining modest interest rates with the appreciation of Bitcoin, they offer the government tools to better manage its finances and provide investors with unique opportunities for mixed returns. 

In an uncertain international context dominated by trade wars, inflation and high interest rates, BitBonds represent a hybrid and forward-thinking solution. They could trigger a new growth cycle for Bitcoin, providing that vital alternative liquidity when the Fed’s policies are unable to do so. The future of finance might start right here: a fusion between bonds and crypto, between state control and decentralization. And in this scenario, Bitcoin Bonds seem destined to lead the way.