Bitcoin price rose to 13-week highs of $99,871 on Friday, setting it up for a fifth successive weekly gain. The latest rally was fueled by news that the US State of i New Hampshire had approved a law allowing it to invest hundreds of millions of dollars in establishing a cryptocurrency reserve.
At the same time, the price action was underpinned by strong trading volume and fresh inflows into Bitcoin ETFs. BTC’s 24-hour trading volume was up by 54% as of this writing, signaling a strong buying appetite despite the strong price upsurge. Also, spot Bitcoin ETF inflows returned to the upside on Wednesday, with the eleven US-traded ETFs reporting +$142 million on Wednesday.
New Hampshire Governor Kelly Ayotte had signed into law House Bill 202, allowing the State to use up to 5% of its funds to purchase Bitcoin and other cryptocurrencies with a market capitalisation of at least $500 billion. In addition an asset must be held by an institution with an exchange-traded product. Bitcoin is the only crypto asset that currently meets that criteria.
According to the legislation, the State will prioritise investing in cryptocurrencies that have a high market capitalisation and are held by a third-party institution as an exchange-traded product. The legislation also mandates that the State diversifies its investments and allocates no more than 70% of its portfolio to a single cryptocurrency.
Texas, the US State with the second-largest GDP also passed its equivalent Strategic Reserve Bill, the SB 21, through the committee stage. The Bill will now proceed to the House floor for voting before potentially being taken to Governor Greg Abott, for assent.
New Hampshire and Texas could set the pace for other US states to establish their strategic cryptocurrency reserves, which could prop up BTC price momentum substantially. However, Florida recently withdrew its crypto reserve bill while Arizona Governor Katie Hobbs refused to sign into law a bill seeking to approve state spending on crypto acquisition.
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Bitcoin Price Prediction
The momentum on Bitcoin price signals that the upside will likely prevail above the pivot mark at $98,740. The price will likely meet a barrier at $98,740. However, if the buyers extend their control, the BTCUSD pair will likely break above that level, potentially clearing the path to test $100,800.
On the other hand, Bitcoin price momentum could swing to the downside if it breaks below $98,740. That will likely see the first support come at $97,260, below which the upside narrative will be invalid. Furthermore, an extended control by the sellers could take the price action lower to test $96,130.
