Bitcoin’s price has soared to $103,400, rising 4% on Friday and gaining over 32% in a month. Bipartisan political support has led to states like New Hampshire and Arizona legally adopting Bitcoin reserves. This surge has pushed Bitcoin to become the fifth largest asset globally, surpassing Amazon. However, traders are questioning the sustainability of this rally, with a key focus on technical indicators at the $100,000 mark.
Bitcoin has seen a significant rise in value, reaching $103,400 on Friday, marking a 4% increase. This surge caps off a remarkable week, with gains of 6.5% and over 32% for the past month. A substantial factor behind this price jump is an unprecedented bipartisan political wave supporting the integration of Bitcoin into the fiscal reserves of various U.S. states.
In a groundbreaking move, New Hampshire and Arizona both enacted legislation for establishing state-held Bitcoin reserves within just two days. New Hampshire led the way by signing the Strategic Bitcoin Reserve (SBR) into law on May 6, under the leadership of Republican Governor Kelly Ayotte. Following closely, Arizona’s Democrat Governor Katie Hobbs also signed a similar bill, House Bill 2749, the next day. This cross-party support for Bitcoin is somewhat rare and highlights its growing acceptance in fiscal discussions.
The new law in Arizona allows for the transformation of unclaimed property funds into Bitcoin and other digital currencies, backed by U.S.-regulated custody. More intriguingly, it even permits returns to be issued in digital formats instead of traditional U.S. dollars. This legislative swing follows a fresh veto of a similar proposal just a week prior, indicating the power of advocacy from Bitcoin supporters.
Dennis Porter, CEO of the Satoshi Action Fund, shared his thoughts via X, stating, “Bitcoin can unite us. You are not bullish enough.” In other news, Texas might soon join this trend; Senate Bill 21 is pending a vote in the House. Should it pass, Texas would become the third state to adopt this Bitcoin reserve strategy.
This state-level enthusiasm seems to be contributing to Bitcoin’s rising value. Earlier this week, Bitcoin officially overtook Amazon, making it the fifth largest asset globally with a market cap of $2.03 trillion, now only following Apple, Microsoft, Saudi Aramco, and Alphabet (Google).
Additionally, institutional interest in Bitcoin is on the rise. Metaplanet, a Tokyo-based company, announced an acquisition of 555 BTC, valued at approximately $53.5 million, bringing its total to 5,555 BTC. This purchase was financed through zero-coupon bonds issued to Evo Fund, showcasing a keen financial strategy to build their crypto portfolio.
However, some traders are voicing concerns regarding the sustainability of this rally. Recent analysis from FX Empire suggests that the market might be “overextended,” and some level of consolidation could be on the way before Bitcoin can truly break through resistance zones at $108,000 and $110,000.
Technical analysts are keeping a close eye on the $100,000 threshold as it now presents both psychological and structural support. A sustained hold above this level could pave the way for further gains, especially if market sentiment improves following upcoming trade talks between the U.S. and China.
As Bitcoin continues its upward trajectory, both institutional and retail investors alike are looking for opportunities within this dynamic landscape, underscoring the potential for new fiscal strategies and wealth generation in the digital age.
