Bitcoin Rallies 0.18% as Federal Reserve Policy Fuels Optimism

Bitcoin's latest price was $97029.39, up 0.18% in the last 24 hours. The cryptocurrency is poised for a significant rally, with predictions of reaching $150,000 this year fueled by macroeconomic influences and market sentiment. Investors are increasingly optimistic due to the Federal Reserve’s current monetary policy, which many believe will lead to favorable conditions for cryptocurrencies. arthur hayes, a prominent figure in the crypto space, stated that the setup is perfect for a rally on risk assets, suggesting that inflationary trends will benefit Bitcoin. Hayes emphasized that the prevailing atmosphere of fear, uncertainty, and doubt (FUD) mirrors past market cycles that led to price surges. This sentiment can often drive investors towards Bitcoin as a safe-haven asset during tumultuous times.

The approval of spot Bitcoin exchange-traded funds (ETFs) has brought a wave of fresh capital into the Bitcoin market. These investment vehicles allow everyday investors to gain exposure to Bitcoin’s price movements through traditional brokerage accounts. This newfound accessibility is fueling institutional interest in Bitcoin, further reinforcing its position as a valuable asset class. Hayes anticipates that the rally in Bitcoin will also extend to altcoins, notably Ethereum and Solana. He predicts that the momentum generated by Bitcoin’s price increase will create a ripple effect across the crypto landscape, benefiting a wider range of digital assets. After all, historical trends have shown that altcoins often follow Bitcoin’s lead during bullish market conditions.

Bitcoin could be getting closer to having a place at the government table. The world’s largest cryptocurrency is now large enough to be held as a reserve asset by the United States. The bank cited Bitcoin’s market capitalization as one of the reasons why the notion is no longer a fantasy. But there’s a catch. Bitcoin still swings too wildly in price. That volatility makes it a risky bet, especially when compared to other reserve currencies like the dollar, euro, or yen. While the numbers show it’s growing, stability is still a major issue. With this development, the Trump government introduced a new executive order instructing the government to set up a federal institution to hold Bitcoins. It is being discussed similarly as how gold is being deposited with the government in Fort Knox. A Strategic Bitcoin Reserve is currently on the political agenda. Backers say the action would potentially put the US ahead of the pack in crypto policy and fortify its financial future. Some go so far as to claim it could aid in the national debt. If the US were to maintain between 12% and 17% of the top crypto’s supply, it would be comparable to the treatment of other currencies in global reserves. That would involve sitting on about $370 billion in BTC to equal its international market significance. Whereas Bitcoin enthusiasts can envision the future, money experts reply that price volatility is still too excessive. Bitcoin supporter Troy Cross admitted the high levels of volatility present make it difficult to label the asset as “reserve ready.” But he also stated that if those fluctuations are below important thresholds, the argument for crypto will be a lot more powerful.

While this is happening, European governments are maintaining distance. The UK has already dismissed the possibility of holding Bitcoin in reserve. During the FT Digital Asset Summit, Economic Secretary indicated that the government will look at regulating crypto and applying blockchain to public finance—but not holding BTC. In Switzerland, the central bank similarly made a decision: during its annual meeting, Swiss national bank President stated that cryptocurrencies do not provide the long-term protection of value required for reserves. He cited abrupt declines in liquidity as one of the primary threats.

In a groundbreaking move, New Hampshire has become the first state in the United States to officially include Bitcoin in its treasury reserves. On May 6, 2025, Governor Kelly Ayotte enacted House Bill 302 (HB 302), which established the Strategic Bitcoin and Digital Asset Reserve. State government financial management practices will undergo fundamental changes as we move into digital fiscal operations. Under this new law, the state treasury maintains authority to invest total state funds by up to 5% into selected digital assets. The fundamental limitation in this program is clear. The state treasury can only invest in assets that exceed a market capitalization threshold of $500 billion. Bitcoin remains the single cryptocurrency available within this market threshold and thus draws the law’s primary focus. By adopting this policy, New Hampshire makes itself one of the leading states in digital asset regulation. Through a social media announcement, Governor Ayotte announced, “New Hampshire returns as the nation’s first state” because of this new law. I have just finalized a new bill that establishes our state’s ability to invest in cryptocurrencies alongside precious metals. The new legislation begins its implementation process sixty days post-signature. The state treasury will utilize this period to construct both legal and technological systems that enable digital asset acquisition and protection. The digital assets must be stored at U.S.-regulated storage facilities while under the protection of rigorous security measures. The state government has two options: establishing state-managed multisignature wallets or partnering with regulated custodian services or approved exchange-traded products. The legislators who drafted HB 302 used model policy provisions developed by Satoshi Action for spreading Bitcoin-friendly legislation throughout the United States. Dennis Porter, who leads Satoshi Action, explained that New Hampshire chose to do more than just endorse a bill. It sparked a movement. According to Porter, the law demonstrates that governments can handle taxpayer funds securely while diversifying investments and advancing public finance structures through Bitcoin’s value stability. Key figures were instrumental in making this law a reality. Longtime Bitcoin supporter Representative Keith Ammon brought forward the model bill to lawmakers when he introduced it in 2022. Republican Party leader Jason Osborne aided the successful progress of the bill through legislative channels, and New Hampshire Blockchain Council member Ian Huyett conducted grassroots activism. The state’s first laws of this kind received approval from Governor Ayotte after she made history as the first executive to support such legislation. The new process diverges from what federal administrations attempt to do. Under the previous Trump administration, Bitcoin was discussed for a national reserve, yet their proposal focused on managing existing government-held Bitcoin rather than acquiring additional ones. Unlike similar measures, New Hampshire distributes specific designated funds to purchase Bitcoin. According to the bill’s supporters, state Bitcoin reserves protect government funds from inflation and financial system instability, and economic volatility. Many states across the nation will likely follow New Hampshire’s pioneering decision through new policies that support Bitcoin investments. For now, New Hampshire operates by itself with its digital asset reserve but its governing action could set the stage for numerous states to establish their own digital reserve funds across America.

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