Despite Montana’s decision, Strategy signaled another major Bitcoin purchase, and is receiving a lot of backing from institutions like BlackRock. Bitcoin traders are eyeing key price levels to determine BTC’s next move. For now, $106,000 is seen as a breakout point and $85,000 as a potential support. Despite short-term volatility, analysts and Cathie Wood are still bullish about Bitcoin’s long-term potential due to institutional adoption.
Montana Lawmakers Vote Against Bitcoin Investment
Montana’s House of Representatives rejected a bill that could have made Bitcoin (BTC) a state reserve asset. Lawmakers are especially concerned about the potential risks of speculative investment with taxpayer funds. House Bill No. 429 failed in a 41-59 vote on Feb. 22, after apprehensions that it will grant the state’s investment board the authority to invest in Bitcoin, stablecoins, and precious metals. The bill’s criteria limited investment to digital assets with an average market cap of more than $750 billion over the past year, which is a threshold that is currently met only by Bitcoin.
Several Republican lawmakers opposed the measure by arguing that investing taxpayer money in cryptocurrency was too risky. Representative Steven Kelly said that the state has a responsibility to protect public funds and suggested that such investments could be too volatile. Representative Bill Mercer is also concerned about the bill, and argued that he did not plan to allow the state to invest in speculative assets like cryptocurrencies and non-fungible tokens. Another lawmaker agreed with this, and even called the proposal a form of speculation.
Despite the opposition, some legislators defended the bill by saying that Montana should focus on maximizing returns on taxpayer funds. Representative Lee Demming argued that if the state holds taxpayer money, it should either aim for the highest possible return or return the funds to citizens.
Bill sponsor Curtis Schomer warned that rejecting the bill will be the greater risk, as Montana’s investment board would continue to lose purchasing power by relying on traditional assets like bonds. Representative Steve Fitzpatrick added that the state had substantial funds sitting idle, which could be better utilized by investing in digital assets and precious metals to generate returns that could ultimately reduce taxes and provide fiscal relief.
The bill previously passed Montana’s business and labor committee in a 12-8 vote on Feb. 19, with all Republicans in favor and all Democrats opposed. With the latest vote, the bill is now effectively dead, meaning any future attempt to establish Bitcoin as a reserve asset in Montana will require a fresh legislative proposal.
Montana’s move happened during broader discussions across the United States on Bitcoin reserves. A total of 24 states have introduced similar legislation, including Arizona, Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, and Texas. According to Bitcoin Laws, 20 of these states still have active bills under consideration. Among them, Utah has made the most progress.
Strategy Signals Another Big Bitcoin Buy
Despite Montana’s hesitancy, Strategy recently signaled yet another Bitcoin acquisition after a brief pause in purchases. Co-founder Michael Saylor posted a Bitcoin chart suggesting an imminent purchase after the company’s last acquisition on Feb. 10, when it bought 7,633 BTC for over $742 million. This brought its total Bitcoin holdings to 478,740 BTC, making it the largest corporate holder of the asset. According to data from SaylorTracker, Strategy’s Bitcoin stash is now valued at more than $46 billion. The company has also seen an impressive 47.7% gain on its investment.
Saylor previously stated that the company plans to ramp up its use of “intelligent leverage” throughout the first quarter of 2025 to finance more Bitcoin purchases. The goal is to create more value for shareholders while also strengthening Strategy’s position as the dominant corporate Bitcoin holder. Despite concerns about the sustainability of its aggressive Bitcoin accumulation strategy, major financial institutions continue to invest in the company through equity and fixed-income securities.
BlackRock, the world’s largest asset manager with over $11.6 trillion in assets under management, recently increased its stake in Strategy to 5%, according to a Securities and Exchange Commission (SEC) filing on Feb. 6. The move took place just one day after the company’s rebrand, which shifted to a more Bitcoin-focused vision. Beyond BlackRock, multiple US state institutions also invested in Strategy. Currently, 12 states hold Strategy stock as part of their pension programs or treasury funds, including Arizona, California, Colorado, Florida, Illinois, Louisiana, Maryland, North Carolina, New Jersey, Texas, Utah, and Wisconsin.
Among them, California’s State Teachers’ Retirement Fund has the largest exposure by holding close to $83 million in Strategy stock. The California Public Employees Retirement System follows closely with approximately $76.7 million in shares. For now, it seems like Institutional confidence in the company is still growing, despite concerns from critics who question the sustainability of its Bitcoin-centric approach.
On Feb. 20, Strategy announced the pricing of a $2 billion convertible note offering, its latest corporate securities issuance aimed at acquiring even more Bitcoin. The company’s continued expansion of its Bitcoin holdings just proves its long-term commitment to the digital asset, which helped it position itself as a leader in corporate Bitcoin adoption.
Bitcoin Traders Eye $106K for Breakout
Crypto traders are closely watching Bitcoin’s price action, and many now suggest that reclaiming the $106,000 level will confirm further upside potential. Pseudonymous trader Pentoshi believes a move back to this range could lead to new price discovery. However, if Bitcoin fails to hold its current support between $92,000 and $94,000, it may retest $85,000, which is a level it hasn’t traded at since Nov. 12. Crypto analyst AlejandroBTC also previously hinted at a possible drop to $85,000.
At press time, Bitcoin was trading at $95,572, according to CoinMarketCap data. Despite the possibility of a short-term pullback, Pentoshi is still bullish, and pointed out that Bitcoin has spent a lot of time consolidating in its current range without breaking down. Some analysts believe that $85,000 may still be an optimistic local bottom, with the potential for a deeper correction. In fact, BitMEX co-founder Arthur Hayes predicted on Jan. 27 that Bitcoin could pull back toward the $70,000 to $75,000 range, which he warned could trigger a “mini financial crisis.”
Other traders are also more cautious about Bitcoin’s next move. Trader Mister Crypto indicated that he will consider opening a major trade if Bitcoin drops to $90,000. Another trader, Donny, said that Bitcoin’s structure looks solid but believes it is still very important to take context into consideration. He suggested that the next few weeks will be crucial in determining its direction. Pseudonymous trader AshCrypto, however, is much more optimistic, and predicted that Bitcoin could reach a new all-time high by March due to CoinGlass data showing that March has historically delivered an average return of 13.42% since 2013.
Bitcoin’s all-time high of $109,000 was set on Jan. 20, just before Donald Trump’s presidential inauguration. While short-term speculation dominates the market, some industry figures are still more focused on Bitcoin’s long-term potential. ARK Invest CEO Cathie Wood increased her probability of Bitcoin reaching $1.5 million by 2030 thanks to the growing institutional adoption of the asset class. She believes that despite recent volatility, the institutionalization of Bitcoin is strengthening its long-term outlook.
This article was originally Posted on Coinpaper.com
