Bitcoin Holds Steady Above $108K as Trump Administration Backs Strategic Reserve Legislation

Quick overview

As institutional adoption picks up speed and official support rises, Bitcoin BTC/USD keeps aggregating around the $108,000 level and shows amazing durability. Particularly after major legal changes and company acceptance announcements, the durability of the cryptocurrency at these high levels demonstrates greater trust in its long-term direction.

At the Bitcoin 2025 conference, Wyoming Senator Cynthia Lummis announced that President Trump supports the BITCOIN Act, historic law guiding US government to buy one million Bitcoin over five years. Using already-existing Federal Reserve System and Treasury Department money, the acquisitions would be funded using “budget-neutral strategies” to minimize burdening of taxpayers.

Comprising a team of experts working on digital asset regulation, the Trump administration intends to present proposals on stablecoins, market structure, and the Bitcoin Strategic Reserve “in that order.”

Complementing this legislative momentum is the emerging GENIUS stablecoin law, which passed a crucial procedural vote 66-32 May 19. With stablecoins constituting over 85% of the $250 billion market via assets like Tether’s USDt and Circle’s USDC, the all-encompassing government framework for dollar-pegged stablecoins could help to further legitimize the cryptocurrency ecosystem.

Corporate Adoption Reaches New Heights with Major Treasury Acquisitions

With Trump Media and Technology Group’s declaration of intentions to buy Bitcoin following a $2.5 billion debt and equity fundraising round, the institutional adoption story acquired notable momentum. Declaring Bitcoin as “an apex instrument of financial freedom,” CEO Devin Nunes signalled a more general corporate treasury strategy tendency.

MicroStrategy keeps leading corporate adoption; lately, it bought 7,390 BTC to reach 576,230 BTC overall. On May 26, large Bitcoin withdrawals from Coinbase—7,883 BTC in net terms—suggestive of ongoing institutional accumulation. Most US spot Bitcoin ETFs get their Bitcoin from Coinbase, hence these significant swings usually precede significant institutional announcements or ETF inflows.

BlackRock’s dedication to Bitcoin grew stronger as seen by its Strategic Income Opportunities Portfolio, which raised IBIT holdings by 25% to 2.1 million shares valued $99.4 million as of March 31. The increasing exposure of the world’s biggest asset manager highlights Bitcoin’s rising importance as a strategic portfolio allocation even inside usually conservative bond-oriented approaches.

BTC/USD Technical Analysis Points to Potential Breakout Above $115K

Technically, Bitcoin is set for a major climb higher. If Bitcoin breaks $115,000, liquidation statistics from CoinGlass shows over $7 billion in short positions might be erased, therefore setting off a domino effect pushing prices toward new all-time highs. With optimistic momentum driven by better US financial circumstances, the bitcoin trades barely 2% below its past peak right now.

The National Financial Conditions Index indicates a quick move to ultra-loose zone, therefore fostering favorable macroeconomic conditions for risk assets. Usually encouraging capital rotation into speculative markets, this climate helps Bitcoin to flourish in such times. Since 2023, the relationship between relieving financial constraints and Bitcoin swings has stayed constant.

On-chain data, however, point to the market maybe approaching overheated conditions. With 19.4 million BTC now lucrative, the Supply in Profit indicator approaches historical highs previously unheard of before corrections. Similar situations sometimes linked with local price tops are indicated by the Advanced Net UTXO Supply Ratio close to 0.95.

Market Dynamics Signal Continued Institutional Demand

Investor behavior study shows consistent institutional interest despite these warning indications. First Buyers, fresh market participants, have returned with substantial demand rises according to Glassnode’s Supply by Investor Behavior indicator, hence perhaps explaining the recent climb to new highs. This suggests a more developed market structure than usual retail-driven cycles.

Stronger buying activity from US-based investors—often connected with institutional demand—reflected in the continuously positive Coinbase Premium Index over the past month. With May poised as a record month with over $1.5 billion in net inflows in just two days, Bitcoin ETF inflows keep setting milestones.

Bitcoin Price Prediction: Targeting $115K-$120K Range

Technical study and basic trends suggest that Bitcoin is ready for a near term movement toward $115,000-$120,000. Legislative support, corporate acceptance, and institutional accumulation taken together give strong basic support for increased pricing. Traders should still be wary of any profit-taking, though, given improved on-chain measures.

The $112,000 level corresponds with immediate technical opposition based on Bitcoin’s market capitalization surpassing Google and Meta. A continuous break above this level might set off the huge short squeeze toward $115,000, so allowing Bitcoin to create new trading ranges in the $115,000-$120,000 zone.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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