Brazil's Strategic Bitcoin Reserve Bill Passes First Committee Review

Bitcoin [BTC] has marked a key adoption development as Brazil's Strategic Bitcoin Reserve Bill passed its first committee review

Brazil's Strategic Bitcoin Reserve Bill has passed its first committee review in the Chamber of Deputies, a significant step in the bill's journey to becoming law.

The bill, which was introduced in November, proposes the creation of a national Bitcoin reserve, allowing the South American nation to allocate up to 5% of its foreign exchange reserves to the cryptocurrency.

If approved, this could make Brazil one of the first major economies to take such a step.

The bill is now set to be examined by another parliamentary committee, and if approved by both the Chamber of Deputies and the Senate, it would go to President Luiz Inácio Lula da Silva for his signature.

However, the bill's chances of passing remain uncertain, and it could face opposition from lawmakers who are concerned about the volatility of Bitcoin.

Also, the bill could be amended or delayed as it progresses through the legislative process.

Earlier this month, a senior Brazilian lawmaker voiced concerns over a bill that could allocate a portion of the country's foreign exchange reserves to Bitcoin.

The bill, which is currently being debated by Congress, would allow Brazil to invest up to 5% of its foreign exchange reserves in Bitcoin, a move that has been praised by cryptocurrency advocates but that some lawmakers, such as Helio Viana, fear could backfire.

Viana, who is the second vice president of the Chamber of Deputies, expressed his worries about the potential consequences of such an investment, considering the volatility of cryptocurrencies.

suggesting that the government should focus on issues like poverty and hunger.

However, supporters of the bill argue that investing in Bitcoin would be a good way for Brazil to diversify its foreign exchange reserves and that it would also help to boost the cryptocurrency market.

The bill is expected to be voted on by the full Chamber of Deputies in the coming months.

Bitcoin institutional appetite grows with Japanese firms taking the lead

As governments grow more receptive to Bitcoin, corporate interest is rising too, particularly among Japanese firms, which are traditionally cautious with investments.

On-chain data shows these companies are buying more BTC during recent dips, with Remixpoint emerging as the latest example.

This uptick in demand reflects a shifting perception: Bitcoin is increasingly seen not as a volatile gamble, but as a long-term hedge against market uncertainty.

ETF inflows surge to $1B

Adding fuel to the bullish fundamental sentiments are the latest ETF figures. Bitcoin ETFs have attracted more than $1 billion in net inflows over the past three days alone, according to CoinGlass data.

The significant spike indicates strong renewed institutional interest, especially as prices reclaim the $110 milestone price level.

Source: CoinGlass

Exchange inflows spark mixed signal

Despite positive macro indicators, Bitcoin exchange inflows continue to show a cyclical pattern, with each accumulation phase often followed by brief sell-offs and price dips.

These cycles reflect short-term profit-taking, but the downtrends are typically shallow and temporary, suggesting underlying strength.

Source: CryptoQuant

With exchange inflows declining over the past 24 hours, BTC may be entering another accumulation phase, especially if ETF demand stays strong and Asian corporate participation increases.

Broadly, Bitcoin's current period of consolidation more resembles a setup than a cooling-off.

With policy shifts, growing ETF inflows, and global corporate attention converging, the stage could be set for BTC's further rally.