States Race to Buy $23 Billion in Bitcoin

Several U.S. states are pushing for the establishment of Bitcoin reserves, with some proposals already gaining traction. If these bills are enacted, they could lead to significant purchases of Bitcoin, potentially totaling $23 billion. This increased demand could also encourage state pension funds to invest in BTC, further straining supply. With Bitcoin already approaching a supply shock, even a few successful bills could drive prices higher.

Since President Trump first proposed the creation of a national Bitcoin Reserve, several states have taken steps to build their own. Matthew Sigel, Head of Digital Assets Research at VanEck, analyzed these proposals and highlighted their potential impact. According to Sigel, if enacted, these 20 state-level Bitcoin reserve bills could lead to the purchase of 247,000 BTC, worth approximately $23 billion. This figure does not include potential investments from pension funds, which could add even more demand.

While President Trump ordered the creation of a federal crypto stockpile, it has not yet fully delivered on his campaign promise. Meanwhile, individual states are making progress. Utah's Bitcoin Reserve bill has passed its first committee, while Oklahoma and Arizona have reached the same stage. North Carolina also advanced its proposal today, moving it to the Committee for Commerce and Economic Development.

If these Bitcoin Reserve bills become law, the impact on BTC's price could be substantial. States would be legally required to buy Bitcoin, adding a wave of demand. This doesn't even account for pension funds, which in some cases could become tied to these reserves. Beyond state governments, a flood of consumer interest could follow. If multiple states are mandated to hold Bitcoin, everyday investors might jump in, fearing they'll miss out. With Bitcoin already nearing a supply crisis, these proposals could act as a detonator for an even bigger price surge.

Currently, Bitcoin's supply struggles to meet rising demand, and 20 state-level reserves could add enormous pressure. While it's unclear how many of these bills will ultimately pass, even a handful could significantly shift the market. A federal Bitcoin Reserve, if created, would be a game-changer that could reshape the crypto landscape entirely.