Utah Passes Bitcoin Bill, BTC Drops 4.23%

Utah has made history by becoming the first U.S. state to pass a Bitcoin bill, marking a significant shift in cryptocurrency regulations at the state level. The bill, known as HB230 or the “Blockchain and Digital Innovation Amendments,” grants jurisdiction over digital assets to the state treasurer and prohibits government departments from restricting the custody or acceptance of Bitcoin and other cryptocurrencies. This legislation ensures that individuals' digital asset custody rights are protected.

The original draft of the bill aimed to make Utah the first state to invest in Bitcoin by allocating up to 5% of the funds in five state accounts to digital assets with a market capitalization exceeding $500 billion. However, concerns over financial stability and the safety of public funds led lawmakers to remove the reserve clause before its passage. The bill was approved in a 19-7-3 vote, with the reserve clause being removed during the final reading due to potential issues related to volatility and regulatory uncertainty.

Despite the removal of the investment provision, the passage of the bill signifies a step toward mainstream acceptance of Bitcoin at the state level. Other states in the U.S. are also considering similar legislation, and Utah's move may encourage them to follow suit in the near future. Meanwhile, Bitcoin's price has been fluctuating, currently trading around $82,000, down 4.23% in the last 24 hours. Market sentiment remains bearish as traders assess broader economic conditions and regulatory updates.

In other developments, the new Prime Minister of Canada has expressed doubts about Bitcoin, sparking speculation about potential changes in the nation's crypto policy. As governments worldwide refine their approaches to digital assets, regulatory clarity will play a crucial role in shaping the future of Bitcoin adoption. While Utah's move is cautious, the momentum behind Bitcoin reserves continues to build at both state and federal levels.

Bitcoin, the leading cryptocurrency, has seen significant volatility recently, with its price dropping to as low as $78,000. This decline has raised concerns among investors and analysts about the potential for further drops. Arthur Hayes, the co-founder of BitMEX, warned that Bitcoin could fall to $78,000 after an "ugly start to the week." He further cautioned that if the price fails to hold, it could drop to $75,000, leading to "violent"