- Utah bans public crypto investment but omits a strategic reserve, sparking debate on Bitcoin’s role as a reserve asset.
- Bitcoin jumps 2.3% to $56,780 after Utah’s bill passes, with high trading volume on Binance and Coinbase.
- Analysts foresee a short-term Bitcoin dip before a major rally, with targets exceeding $200K based on Elliott Wave analysis.
The Utah House of Representatives has passed HB0230S03, a bill banning public investment in digital assets while allowing certain exceptions. However, the legislation did not include the proposed Strategic Reserve component, an omission.
The value of Bitcoin also reacted positively to the news, climbing 2.3% to $56,780 from the session’s close of $55,490. Volumes erupted on large exchanges like Binance and Coinbase, where a combined total of 32,450 BTC changed hands during the first hour following the announcement.
Market Response and Trump’s Crypto Reserve Proposal
Besides Utah’s legislative move, former President Donald Trump recently suggested the creation of a U.S. strategic crypto reserve. He mentioned that the reserve could hold XRP, Solana (SOL), and Cardano (ADA), alongside Bitcoin and Ethereum (ETH).
However, Bitcoin alone meets the criteria of a reserve asset, like gold, according to numerous industry executives who challenged his position. Trump has not made it apparent how the government will obtain these digital assets or oversee their strategic application.
Consequently, the mixed response from the crypto community highlights the ongoing debate over Bitcoin’s role as a primary reserve asset. The lack of detailed implementation plans leaves uncertainty surrounding the feasibility of a U.S. crypto reserve.
Bitcoin’s Technical Outlook and Future Projections
Moreover, Bitcoin’s price movement follows a structured Elliott Wave pattern. The current trend suggests that Bitcoin recently completed a five-wave rally before entering a corrective phase. Analysts have identified a WXY corrective structure, projecting a potential bottom near $70,618.98 before the next major upward move.
At $85,848.97, Bitcoin is still above the anticipated correction zone. Analysts predict a brief drop, followed by a robust rally aimed at prices above $200,000. In line with previous market cycles, the Fibonacci-based prediction predicts a retracement prior to a fresh bullish wave.
Additionally, with impulsive waves signifying strong purchasing enthusiasm and corrective waves reflecting brief pullbacks, the Elliott Wave count provides insight into market mood. The long-term view is still optimistic given past trends, confirming Bitcoin’s potential as a significant financial asset.
