Bitcoin Reaches $104,800 as Ohio Moves Toward Bitcoin Reserve Act

Bitcoin has surged to $104,800, reflecting growing momentum in the cryptocurrency market as the proposed Ohio Bitcoin Reserve Act gains traction. Spearheaded by Republican House Leader Derek Merrin, the bill could pave the way for Ohio to diversify its state treasury by purchasing Bitcoin, positioning the cryptocurrency as both a hedge against inflation and a financial opportunity.

This move follows a broader trend of state-level adoption of Bitcoin, with Pennsylvania and Texas also exploring similar strategies. As Ohio’s legislative session nears its end on December 31, Merrin is already planning to reintroduce the bill in 2025, a step that could further solidify Bitcoin’s institutional appeal.

Ohio’s Bold Move: Diversifying State Assets with Bitcoin

The proposed Ohio Bitcoin Reserve Act is gaining significant attention as it aims to allow the state treasury to purchase Bitcoin as part of a broader effort to diversify its assets. Citing concerns over the devaluation of the U.S. dollar, the bill emphasizes Bitcoin’s potential as a store of value in an increasingly uncertain financial environment.

The proposed legislation is the latest example of Bitcoin’s growing adoption at the state level. Pennsylvania and Texas have already made strides in exploring ways to incorporate Bitcoin into their financial systems, signaling a shift toward more decentralized assets at the governmental level. As Merrin looks ahead to reintroducing the bill in 2025, the push for Bitcoin integration at the state level seems likely to intensify.

Bitcoin Hits $108K Before Profit-Taking Pullback

Bitcoin’s momentum has been undeniable, briefly hitting an all-time high of $108,315 before settling around $104,500. The pullback comes as traders digest the possibility of a Federal Reserve rate cut, with market participants speculating that such a move could further boost risk-on assets like Bitcoin.

The broader crypto market is also buoyed by growing optimism surrounding potential pro-crypto policies under President-elect Donald Trump. Analysts believe that these policies, combined with an increasing trend of institutional adoption, are fueling the current rally.

The Federal Reserve and the Dollar’s Influence on Bitcoin

The dollar showed strength following stronger-than-expected November retail data, but the market is still heavily focused on the prospect of a Federal Reserve rate cut. Currently priced at a 97% probability, such a cut would likely ease the dominance of the U.S. dollar and usher in more risk-on sentiment across financial markets. This environment would likely benefit cryptocurrencies, with Bitcoin positioned as a key beneficiary.

Bitcoin ETFs: A Growing Institutional Presence

One of the key drivers behind Bitcoin’s institutional acceptance has been the rise of Bitcoin ETFs. As of now, Bitcoin ETFs hold a staggering $121.8 billion, or about 5% of Bitcoin’s total supply. Just last week, spot ETFs saw inflows of $2.16 billion, underscoring the growing institutional interest in the asset class.

With more institutions adding Bitcoin to their portfolios, analysts are increasingly bullish on the cryptocurrency’s future. Some predict Bitcoin prices could reach as high as $200,000 by mid-2025, further solidifying its position as a mainstream financial asset.

Bitcoin’s Technical Outlook: Key Levels to Watch

As Bitcoin consolidates around $104,800, attention turns to its technical setup. After dipping to $103,169, the cryptocurrency has rebounded to its current level, with immediate resistance at $105,152 (Fibonacci 0.382) and the next major hurdle at $106,377 (Fibonacci 0.618). A breakout above this level could signal a rally toward $107,217 and beyond.

On the downside, Bitcoin must maintain support above the $104,394 pivot (Fibonacci 0.236) to avoid a retest of the $103,169 level. The 50-day Exponential Moving Average (EMA) continues to provide support, while the Relative Strength Index (RSI) sits at 53.61, indicating a neutral momentum that shows signs of recovery.

Institutional Demand Drives Bitcoin’s Long-Term Bullish Trend

Bitcoin’s continued institutional adoption is a key factor in its long-term growth trajectory. As Bitcoin ETFs continue to see significant inflows, and with state governments like Ohio exploring Bitcoin as an asset for diversification, the stage is set for the cryptocurrency to solidify its place as a legitimate financial asset.

With analysts predicting a possible $200,000 price point by mid-2025, Bitcoin’s journey is far from over. The combination of institutional investment, potential pro-crypto policies, and state-level adoption suggests that Bitcoin’s future is poised for even greater gains.

As Bitcoin continues to make headlines and break records, its institutional appeal is undeniable. With both traditional financial entities and state governments recognizing the potential of digital assets, Bitcoin’s position as a store of value and hedge against economic uncertainty has never been clearer.