The Texas Senate is scheduled to conduct a public hearing on February 18 to explore the creation of a Bitcoin reserve; however, market analysts suggest that this initiative might be mainly symbolic unless the state outlines a prompt investment strategy.
The inaugural public hearing regarding the potential establishment of a strategic Bitcoin (BTC) reserve in Texas is set for February 18, occurring less than a week after the bill was submitted to the Secretary of the Senate, as per information from the Texas government’s website.
Bill SB21. Source: Capitol.texas.gov
While this is viewed as a positive move for Bitcoin adoption, the hearing may only signify a “symbolic gesture” for the cryptocurrency markets, according to Iliya Kalchev, a dispatch analyst with Nexo.
“Texas recognizing Bitcoin as a reserve asset is another strategic step in BTC’s journey toward institutional legitimacy, but state-level initiatives often create ripples rather than waves, especially when compared to ETF inflows or corporate treasury investments,” Kalchev stated in his comments to Cointelegraph.
“Unless the hearing reveals a short-term acquisition plan or a significant policy change, the market response is likely to remain subdued, as Texas’ pro-crypto position is already well established,” he continued.
BTC/USD, 1-month chart. Source: Cointelegraph
Bitcoin has struggled to gain upward traction, remaining below the $100,000 psychological level for over nine days since February 7, according to Cointelegraph Markets Pro data.
Related: Bitcoin holds $95K support despite considerable selling pressure
In the short term, Bitcoin might continue to face pressure from ongoing trade conflicts between the US and China, as noted by Vugar Usi Zade, the chief operating officer at Bitget.
“As long as this headwind persists in the market, with President Trump preparing for further tariff increases in the upcoming weeks, Bitcoin has shown resilience in its trading,” Zade remarked to Cointelegraph.
“Given that the US remains the largest capital market, geopolitical tensions may continue to pose challenges for the cryptocurrency,” he added.
Related: Bitcoin price could reach $1.5M by 2030 — Cathie Wood
Trade tensions and Federal Reserve policy impact Bitcoin
While optimistic news surrounding Bitcoin reserve legislation signifies ongoing institutional adoption, Bitcoin’s path is primarily influenced by the monetary policy of the US Federal Reserve, according to Kalchev:
“Crypto markets tend to price in anticipated developments, and while this hearing may contribute to Bitcoin’s long-term adoption narrative, macroeconomic factors like Fed policy and regulatory changes remain the primary influencers of BTC’s direction.”
Kalchev further emphasized that Texas’ drive for a Bitcoin reserve mirrors a wider economic and political trend.
Other states are also moving forward with similar legislation. Kentucky has recently become the 16th US state to propose a Bitcoin reserve law that allocates up to 10% of surplus state reserves towards digital assets, as reported by Cointelegraph on February 6.
Magazine: BTC above $150K is ‘speculative fever,’ SAB 121 canceled, and more: Hodlers Digest, Jan. 19 – 25
