Bitcoin (BTC) is holding steady around $105,200 as of Tuesday, just 4% below its all-time high of $109,588. Despite strong institutional momentum and growing state-level interest in digital asset adoption, BTC has yet to break through its peak. Positive developments—including JPMorgan allowing clients to purchase Bitcoin and Texas advancing a bill to create a state Bitcoin reserve—are fueling optimism. However, technical indicators suggest short-term weakness, keeping a breakout in check for now.
JPMorgan Opens Bitcoin Access for Clients
In a landmark shift, JPMorgan Chase announced it will allow its clients to buy Bitcoin—a significant move for the largest bank in the United States. CEO Jamie Dimon made the announcement during the bank’s annual investor day, stating, “We are going to allow you to buy it.” While the bank won’t custody the cryptocurrency, it will reflect Bitcoin holdings on client statements, effectively integrating digital assets into traditional wealth management frameworks.
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This development marks a turning point in Wall Street’s relationship with crypto. Even though Dimon has long been a vocal critic of Bitcoin—citing concerns over illicit use such as money laundering and sex trafficking—he emphasized personal freedom in financial choice: “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin.”
The decision aligns with broader industry trends. Since August 2024, Morgan Stanley has offered access to spot Bitcoin ETFs for eligible clients, signaling growing acceptance among major financial institutions. Additionally, regulatory tailwinds have strengthened the landscape: the controversial accounting rule SAB 121 has been repealed, enabling banks to legally custody digital assets. Under the pro-crypto stance of the current U.S. administration, these shifts reflect a more favorable environment for Bitcoin integration into mainstream finance.
Texas Moves Closer to Establishing State Bitcoin Reserve
Meanwhile, the Texas House is set to conduct a second reading of Senate Bill 21 (SB21), also known as the Texas Bitcoin Reserve Bill. If passed, this legislation would create a Texas Strategic Bitcoin Reserve, managed by the state comptroller outside the state treasury. The fund could hold Bitcoin and other digital assets—though only those with a market capitalization exceeding $500 billion would qualify. Currently, Bitcoin is the only asset meeting that threshold.
The bill must clear the House Public Health Committee by Saturday to advance to a final floor vote before the legislative session ends in early June. Should it pass, Texas would become the third U.S. state to establish such a reserve, following New Hampshire and Arizona. Earlier efforts in Florida, Wyoming, Montana, and Pennsylvania have stalled or been withdrawn this year, highlighting the uneven pace of state-level crypto adoption.
This move underscores a growing trend of governments treating Bitcoin as a legitimate store of value—akin to gold reserves. By diversifying state assets into digital currency, Texas could set a precedent for fiscal innovation across the country.
👉 See how governments are rethinking asset reserves in the digital age.
Institutional Demand for Bitcoin Remains Strong
Institutional appetite for Bitcoin remains robust. U.S. spot Bitcoin ETFs recorded $667.44 million in net inflows on Monday alone, extending a four-day streak of positive momentum that began May 14. According to SoSoValue data, sustained institutional buying could provide the necessary fuel for BTC to finally surpass its January 20 all-time high.
Another catalyst emerged in the form of the GENIUS Act, federal legislation aimed at regulating stablecoins. The bill cleared a key procedural hurdle in the U.S. Senate on Monday night—an important win for the crypto industry. A clear regulatory framework for stablecoins enhances market confidence and improves liquidity infrastructure, indirectly supporting Bitcoin’s long-term value proposition.
Additionally, macroeconomic sentiment improved after former President Donald Trump hinted at a potential ceasefire between Russia and Ukraine via Truth Social. Such geopolitical optimism often boosts risk-on assets like Bitcoin, reinforcing its role as a hedge during uncertain times.
Technical Outlook: Momentum Shows Early Signs of Weakness
Despite strong fundamentals, Bitcoin’s price action shows signs of hesitation. After rallying 3.23% on Sunday and breaking above the critical $105,000 resistance level, BTC erased those gains during Monday’s Asian session. It partially recovered by the close of the New York session, settling slightly above $105,500—but is now trading near $105,000 again on Tuesday.
Technical indicators on the daily chart suggest weakening bullish momentum:
- The Relative Strength Index (RSI) stands at 67 and is trending downward after being rejected from overbought territory (70) on Sunday.
- The Moving Average Convergence Divergence (MACD) generated a bearish crossover on Sunday, with the MACD line dipping below the signal line—typically interpreted as a sell signal.
These signals indicate that while the broader uptrend remains intact, short-term profit-taking or consolidation may be underway.
Two scenarios are now possible:
- If BTC fails to hold support at $105,000, it could retest the psychological **$100,000** level.
- Conversely, if buyers regain control and stabilize prices above $105,000, the path toward the all-time high of **$109,588** remains open.
Frequently Asked Questions About Bitcoin and Digital Assets
Q: What is Bitcoin?
A: Bitcoin is the world’s first decentralized digital currency, operating without central authority or intermediaries. It uses blockchain technology to enable peer-to-peer transactions and has a capped supply of 21 million coins.
Q: What are altcoins?
A: Altcoins refer to any cryptocurrencies other than Bitcoin. Examples include Ethereum, Litecoin, and Solana. Some consider Ethereum distinct due to its foundational role in smart contracts and decentralized applications.
Q: Why are stablecoins important?
A: Stablecoins maintain a stable value by being pegged to assets like the U.S. dollar. They serve as bridges between traditional finance and crypto markets, offering liquidity and reducing volatility exposure.
Q: What does Bitcoin dominance mean?
A: Bitcoin dominance measures BTC’s market cap as a percentage of the total crypto market. High dominance suggests investor preference for BTC during uncertain times; declining dominance often signals increased interest in altcoins.
Q: Can states really hold Bitcoin as reserves?
A: Yes—several U.S. states are exploring or have already passed legislation allowing them to hold Bitcoin in their reserves. This reflects growing recognition of digital assets as legitimate long-term holdings.
Q: Is institutional adoption bullish for Bitcoin?
A: Absolutely. When major financial institutions and governments adopt Bitcoin—even indirectly through ETFs or reserves—it increases legitimacy, drives demand, and supports price appreciation over time.
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