Bitcoin hits $100K as institutional money pours in, a royal bitcoin drain, two U.S. States Enact Strategic Bitcoin Reserve Legislation

Bitcoin surged past the $100,000 mark amid a wave of institutional investment. In a striking move, Bhutan offloaded 2,584 BTC over 40 days

Bitcoin price broke through the $100,000 level on Thursday, continuing its rapid ascent amid a wave of institutional investment. The last time the cryptocurrency topped six figures was in February shortly after reaching its all-time high of $20,800 in November 2021.

However, several factors have converged in recent months to push Bitcoin on a steeper trajectory. In August alone, Cathie Wood’s investment firm, Arc Invest, made a significant move by applying to launch a Bitcoin exchange-traded fund (ETF), while a slew of U.S. senators introduced a bipartisan bill to ban the direct federal taxation of cryptocurrency node operators.

These developments come as the cryptocurrency is showing resilience in the face of inflation concerns and potential economic uncertainty. Bitcoin’s price had already shown strength in May, recovering quickly from a dip below $25,000 to rise above $30,000.

This surge followed a period of volatility that saw Bitcoin fluctuate between $19,000 and $24,000 for several months, impacting altcoins and the broader market.

Bitcoin: Several Tailwinds Point To A New All-Time High

Several tailwinds are converging to propel Bitcoin towards a potential retest and breakout of its all-time high. As the cryptocurrency surges past the $100,000 mark, it is entering uncharted territory, setting the stage for an interesting and potentially pivotal chapter in the cryptocurrency narrative.

Royal Bitcoin Drain: Bhutan Quietly Dumps 2,584 BTC In 40 Days

The Royal Government of Bhutan, via Druk Holding Company (DHC), has offloaded 2,584 BTC over a period of 40 days, commencing mid-July, according to a report by the Korea Economic Daily.

The report, which cites a Japanese cryptocurrency media outlet, adds that DHC began selling BTC in cooperation with SBI Group, a prominent Japanese financial institution.

The move by the small Himalayan kingdom comes as no surprise, given the country’s vast Bitcoin holdings, which were initially disclosed in December 2020. At the time, the government announced an initial investment of $70 million in BTC during the 2019 bull market, when Bitcoin was trading around $7,000.

The holdings quickly grew to $3 billion by the end of 2020, with the government utilizing a portion of the country’s foreign exchange reserves to acquire BTC.

Within 48 Hours, 2 US States Enact Strategic Bitcoin Reserve Legislation

In a groundbreaking development, two U.S. states have legalized strategic bitcoin reserves within 48 hours.

The governors of both Montana and Wyoming signed legislation to permit state-level strategic bitcoin reserves, a move that has significant implications for the cryptocurrency industry.

Montana Governor Greg Gianforte signed the bill on Wednesday, while Wyoming Governor Mark Geistwandner enacted the legislation on Thursday.

The bills, which were passed by both state legislatures earlier this year, will allow the state governments to allocate a portion of their treasury holdings to bitcoin.

The legislation also includes provisions for the safekeeping and management of the bitcoin reserves.

The Montana bill, S.B. 284, was introduced by State Senator Tom Mathers and will go into effect on October 1.

The Wyoming bill, H.B. 118, was introduced by State Representative Bill Pownall and has already gone into effect.

The rapid approval of these bills underscores the growing interest in cryptocurrency at the state level.

The bills are part of a broader trend of states taking a more active role in regulating the cryptocurrency industry.

Earlier this year, several other states, including Texas, Florida, and Arizona, passed legislation to create a more favorable regulatory environment for cryptocurrency businesses.

This move by two U.S. states to legalize strategic bitcoin reserves is a significant step forward for the cryptocurrency industry. It could pave the way for other states to follow suit, and it could eventually lead to the federal government taking a more active role in regulating crypto.

At the federal level, the U.S. has unveiled a sweeping draft crypto bill that redefines digital asset oversight, setting the stage for the "golden age of digital assets."

This draft bill, released on Thursday by the Bipartisan Policy Center (BPC), aims to establish a structured, broad-based, and innovation-friendly regulatory framework for crypto in a collaborative effort with industry leaders.

The initiative is part of the BPC's 'Digital Dollar Project,' which focuses on advising policymakers on the opportunities and challenges posed by new technologies in the financial system.

The draft legislation proposes the creation of a "digital asset coin" to be issued by the Treasury, overseen by a council of federal regulators, and pegged to the U.S. dollar. It would be used for cross-border payments and to foster financial inclusion