Bitcoin rallies above $101,000 as US state level strategic reserves and mass adoption accelerate

Key takeaways: Bitcoin rallies to $101,707 against a backdrop of strong fundamentals in the regulatory and traditional finance space. Traders are confident that $100,000 will hold as support. Bitcoin (BTC) price rallied above $100,000 on the heels of US President Donald Trump’s announcement of a “trade deal” with the UK, which could possibly include the removal of the blanket 10% tariff on all imports. Frequent social posts from Trump and public comments from White House cabinet members have hinted at a handful of trade deals in negotiation with various countries, and markets have responded positively to the messaging. In addition to the UK trade deal, the US is set to meet with Chinese officials in Switzerland on May 10. The Dow gained 500 points following the White House announcement, while the S&P 500 rose 1.47%, and Bitcoin trades near $101,600 at the time of writing. In a Truth Social post, Trump wrote: “Many other deals, which are in serious stages of negotiation, to follow!” The significance of Bitcoin’s return to six-figure territory after trading below the level since February was not lost on investors: In an X post, popular independent market analyst Macroscope said he was “watching closely now,” and stressed the importance of BTC “holding” the $100,000 level as a support, rather than a brief pop above the psychological resistance level. While the initial surge through the $100,000 level appears to be driven by $241 million in futures market liquidations, the political and investment environment surrounding Bitcoin has seen vast improvements since the last time BTC traded above six figures. In the past week, the governors of two US states have signed bills, which now make it legal for the states to establish strategic Bitcoin reserves. On May 8, the legislature in the US state of Missouri sent Bill 594, a bill which would end all capital gains taxes, to the desk of Governor Mike Kehoe. Related: Strive to become Bitcoin treasury company On May 7, the US Office of the Comptroller of the Currency (OCC) confirmed that banks within its jurisdiction can “responsibly” trade crypto on behalf of their customers, and they can also “outsource” crypto and custodial activities to trusted third parties. In late March, the FDIC issued guidance giving banks the green light to hold crypto assets and offer various goods and services to clients. In addition to growing legislative and regulatory support for Bitcoin and other cryptocurrencies, inflows to the spot Bitcoin ETFs have soared, alongside increasing buying and BTC treasury from US-based and international publicly listed companies. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. Source: https://cointelegraph.com/news/bitcoin-hits-101-7-k-as-us-strategic-reserve-bills-become-law-and-btc-mass-adoption-accelerates?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound