Bitcoin (BTC) Price Rally Halted at $97,800

Bitcoin (BTC) price rally hit a snag on Saturday, as markets reacted to a major update in Arizona state’s cryptocurrency reserve adoption.

Governor Katie Hobbs vetoed a bill that would have allowed the state to invest public funds in Bitcoin, dealing a setback to crypto proponents.

The bill, which passed the Arizona House last week, had proposed establishing a Digital Assets Strategic Reserve using seized state funds and upto 10% of the state Treasury.

However, Governor Hobbs decided against the measure, aligning Arizona with other states like Oklahoma, Montana, and Wyoming, where similar crypto bills faced setbacks.

“Arizona's retirement system remains one of the strongest in the nation precisely because we do not invest in risky, untested assets like virtual currency,” said Governor Hobbs in her veto letter.

This development comes as a setback for crypto institutions, who had been closely watching Arizona’s progress in setting the stage for Bitcoin adoption at the state level.

After a bipartisan vote in the state legislature, the bill’s rejection by Governor Hobbs has implications for another related proposal, SB1373, which is still pending a final vote.

This bill, which passed the state Senate 26-4 last month, proposes allowing state universities and colleges to accept donations in cryptocurrency.

SB1373 must now be returned to the House for a final vote, and if approved, will head to Governor Hobbs' desk for her signature or veto.

Bitcoin price action saw a slight pullback as traders reacted to the news. BTC/USD hit a high of $97,800 early Saturday, having risen steadily from $92,000 on Friday.

The cryptocurrency faced resistance around the $98,000 mark, a level where short-term traders have placed a large cluster of leveraged bets.

According to Coinglass’ Liquidation Map, bears have formed a "wall" of nearly $1.2 billion in short positions at $98,000. In comparison, bulls have a total of $7.45 billion in long positions.

Out of the $8.65 billion in total positions, nearly 25% is focused on the $98,000 zone, suggesting that bears are using Arizona’s regulatory rejection as a final push.

Despite this, bulls still hold a $3 billion advantage, suggesting a strong defense could emerge around support levels, particularly near $96,000, where previous consolidation zones have formed.

Bitcoin price technical analysis: A slight pullback as AZ governor’s veto dampens mood

Bitcoin price has encountered unexpected resistance as Governor Katie Hobbs of Arizona decided against a bill that would have allowed the state to invest in Bitcoin.

The bill, which passed both the state House and Senate, aimed to establish a Digital Assets Strategic Reserve using seized state funds and up to 10% of the state Treasury.

However, Governor Hobbs ultimately vetoed the measure, aligning Arizona with other states where similar crypto bills faced setbacks earlier this year.

This development is a setback for crypto institutions, who had been closely following Arizona’s progress in setting the stage for Bitcoin adoption at the state level.

After a bipartisan vote in the state legislature, the bill’s rejection may have implications for another related proposal, SB1373, which is still pending a final vote.

This bill, which passed the state Senate 26-4 last month, proposes permitting state universities and colleges to accept donations in cryptocurrency.

SB1373 must now be returned to the House for a final vote, and if approved, will head to Governor Hobbs’ desk for her signature or veto.

Bitcoin price action saw a slight pullback as traders reacted to the news. BTC/USD hit a high of $97,800 early Saturday, having risen steadily from $92,000 on Friday.

The cryptocurrency faced resistance around the $98,000 mark, a level where short-term traders have placed a large cluster of leveraged bets.

According to Coinglass’ Liquidation Map, bears have formed a "wall" of nearly $1.2 billion in short positions at $98,000. In comparison, bulls have a total of $7.45 billion in long positions.

Out of the $8.65 billion in total positions, nearly 25% is focused on the $98,000 zone, suggesting that bears are using Arizona’s regulatory rejection as a final push.

Despite this, bulls still hold a $3 billion advantage, suggesting a strong defense could emerge around support levels, particularly near $96,000, where previous consolidation zones have formed.

Looking ahead, the presence of $1.2 billion in short positions clustered at $98,200 could dampen momentum toward a $100,000 breakout.

For Bitcoin to