Arizona Prepares to Make History, Becoming the First U.S. State to Legally Invest Public Funds in Bitcoin

The state of Arizona is on the verge of making history as the first U.S. state to legally invest public funds in Bitcoin (BTC), with a bill now heading to Democratic Governor Katie Hobbs for final approval.

The Arizona Strategic Bitcoin Reserve Act, passed by the state legislature on Monday, would authorize up to 10% of the state’s treasury and retirement system funds to be allocated into the cryptocurrency.

This legislation signals an aggressive and unprecedented embrace of digital assets by a U.S. government body at a time when a growing number of states are considering similar moves.

With Arizona’s total available public funds at roughly $31.4 billion, a full 10% allocation would translate to an initial purchase of roughly $3.14 billion in Bitcoin.

This large-scale investment could have significant implications for the crypto markets and might catalyze a wave of state-level crypto adoption.

Bitcoin Goes Political: A Race Among U.S. States?

Arizona’s move isn’t happening in a vacuum. As reported by Blockware, several other states are considering the creation of a state-level strategic Bitcoin reserve.

Among them are Iowa, where a bill to allocate 0.5% of state treasury funds into Bitcoin is being drafted, and Missouri, where a bill to create a Bitcoin treasury fund is currently in the works.

Texas, known for its strong Bitcoin mining industry, is also a key contender, with state legislators discussing a treasury allocation to Bitcoin as part of a broader conversation on state-level cryptocurrency regulations.

At the federal level, President Donald Trump signed an executive order in March calling for the establishment of a national strategic bitcoin and digital asset stockpile.

This political momentum, evident in the bipartisan support for crypto bills and the increasing interest of state-level officials, is solidifying Bitcoin’s place as a treasury and strategic reserve asset in the public sector.

The Arizona bill’s co-sponsors, Sen. Wendy Rogers and Rep. Jeff Weninger—both Republicans—are spearheading what could become a nationwide trend. If Arizona becomes the first to act, others may quickly follow.

Crucially, the bill’s sponsors have secured bipartisan support, a testament to the growing non-partisan interest in cryptocurrency at the state level.

As reported by Blockware, the bill’s passage through the legislature marks a significant milestone in Arizona’s journey toward integrating cryptocurrency into its public finances.

This legislation is part of a broader narrative of financial institutions realigning their portfolios toward Bitcoin.

For instance, Union Bank’s CIO recently stated his bullish view on Bitcoin in an interview with Real Vision, highlighting its role as a hedge in an inflationary environment.

Moreover, a recent report by Factor Analysis and Benchmarking, commissioned by Fidelity, suggests that institutions are pivoting toward Bitcoin and other cryptocurrencies.

This institutional consensus is cutting across asset classes and experience levels.

These are not niche opinions—they are reflecting the evolving view of global asset managers that Bitcoin is a legitimate hedge, a store of value, and a non-correlated growth asset.

On-Chain Data Signals Euphoria Ahead

According to CryptoQuant, Bitcoin’s on-chain behavior is reaching a tipping point. Their latest Supply in Profit indicator reveals that 89% of the Bitcoin supply is currently in profit.

When the supply in profit surpasses 90%, it consistently triggers euphoric phases among traders and investors—and we are now on the brink of reaching that level.

This historic threshold has preceded massive rallies of 100% or more in previous cycles, suggesting that Bitcoin may soon enter another period of speculative exuberance.

The Forecasts: $120K? $130K? It’s All On the Table

The Arizona news lands amid a flurry of bullish price predictions. Together with CryptoQuant’s on-chain data, these projections suggest the Arizona news isn’t just politically symbolic—it could be a spark in an already explosive setup.

Among the notable predictions is that of Charles Harris, founder of the Node Health cryptocurrency startup, who forecasts Bitcoin to hit $120,000 to $130,000 by the end of 2024.

His projections are based on an analysis of Bitcoin’s historical cycles and the current macroeconomic trends.

Another analyst, known as "CRYPTO_LION.ETH" on X (formerly Twitter), predicts that Bitcoin will rally to $110,000 by November. This prediction is based on an observation of a bullish divergence in Bitcoin’s price chart.

Together, these predictions suggest that a substantial price rally may be on the cards for Bitcoin in the coming months.

If Governor Hobbs signs the Arizona Strategic Bitcoin Reserve Act, it will mark the first time in U.S. history that a state commits to a treasury allocation of this magnitude.

With macro trends aligning, institutional models growing bolder, and on-chain