Bitcoin (BTC) Price Holds Steady Near $96K As Bullish Momentum Cools

The Bitcoin price slipped 0.5% in the last 24 hours to trade at $95,937 as of 9 p.m. EST on a 38% plunge in trading volume to $15 billion.

The small tumble in the BTC price came as Arizona Governor Katie Hobbs rejected a bill that would have allowed her state to create a Strategic Bitcoin Reserve.

Despite passing the House 31–25, Hobbs rejected the move, calling cryptocurrency an “untested investment” and reaffirming her commitment to keeping public funds in safer, proven assets.

“I am returning this bill with a veto,” said Hobbs. “Despite the enthusiasm of some lawmakers for this new technology, it is important to recognize that cryptocurrencies remain largely untested in periods of economic downturn.”

“[A]lternatively, the U.S. government has a long and proven track record of investing in assets that are used to support critical public services and programs.”

The bill, which was approved by the state Senate last month, aimed to create a new investment vehicle within the state treasury, permitting Arizona to allocate up to 5% of its reserve assets into bitcoin.

The move was largely seen as a response to the U.S. government’s investment in the country’s stock market and other traditional assets.

However, Hobbs said that she did not want to see any of the state’s funds go into cryptocurrencies.

“I am returning this bill with a veto,” said Hobbs. “Despite the enthusiasm of some lawmakers for this new technology, it is important to recognize that cryptocurrencies remain largely untested in periods of economic downturn.”

“We have seen how quickly the cryptocurrency market can shift, and I do not believe that it is a wise move for Arizona to be investing any of its reserve funds in such a volatile asset class.”

Hobbs added that she was also concerned about the lack of consumer protection in the cryptocurrency market.

“I am committed to protecting the interests of Arizonans, and that includes ensuring that they are not being exploited by cryptocurrency scams,” she said.

“I have no interest in investing public funds in an asset class that is known for being a haven for fraudsters and scammers.”

The governor’s decision comes as several other U.S. states are considering similar bills to allow their state treasuries to invest in bitcoin.

Earlier this year, a bill that would have granted legal status to bitcoin, ethereum and other cryptocurrencies in Louisiana was vetoed by the state’s governor. The bill would have also prevented local governments from levying taxes on crypto mining operations.