The state of North Carolina has become the latest to introduce a bill allowing the investment of public funds in digital assets like Bitcoin (BTC). 

House Bill 92, also known as the “Digital Assets Investments Act,” was introduced on Monday. The bill is sponsored by Representative Destin Hall, along with Representatives Mark Brody and Steve Ross.

North Carolina Pushes Bitcoin Bill

The bill grants North Carolina’s State Treasurer the authority to allocate state funds to digital assets while adhering to strict security, management, and oversight criteria.

“Investing in digital assets like Bitcoin not only has the potential to generate positive yields for our state investment fund but also positions North Carolina as a leader in technological adoption & innovation,” Hall said in a statement.

The legislation defines “digital assets” as virtual currencies, cryptocurrencies, stablecoins, nonfungible tokens (NFTs), or any other digital assets that confer economic, proprietary, or access rights. 

“The average market capitalization of the digital assets over the preceding 12 months is at least seven hundred fifty billion dollars ($750,000,000,000), as determined by the State Treasurer using a commercially reasonable method,” the bill specifies.

Bitcoin is the only cryptocurrency meeting the bill’s $750 billion market capitalization threshold. As per BeInCrypto, Bitcoin’s market cap stands at $1.95 trillion. In contrast, Ethereum (ETH), the second-largest cryptocurrency, falls short at $327.57 billion.

Beyond direct investments, the bill permits the State Treasurer to invest in digital asset exchange-traded products (ETPs). These must be listed or authorized for listing on reputable exchanges such as the New York Stock Exchange (NYSE) or NASDAQ and comply with rigorous security standards.

The bill also places limits on investment exposure. The total amount allocated to digital assets cannot exceed 10% of the fund’s balance at the time of investment. 

Furthermore, the State Treasurer is authorized to invest in over 30 special funds, including retirement systems, health plans, and other designated funds, ensuring investments align with each fund’s specific purposes and needs.

“NC has ~$9.6 billion in Reserve funds, and has $127 billion in its retirement systems. This translates to an investible amount of ~$13.7 billion,” Bitcoin Laws revealed on X (formerly Twitter).

North Carolina is not alone in exploring Bitcoin investments. Florida has also introduced its second bill, House Bill 487, to allocate 10% of public funds to Bitcoin. 

Meanwhile, more than 20 states are actively working on similar Strategic Bitcoin Reserve legislation. Among these, Utah stands out as the most advanced. The bill has passed the state house and is now under consideration in the state senate. Arizona follows closely, with its bill having passed the committee.

Market analyst Axel Adler Jr has shared some valuable insights on the Bitcoin market in relation to recent short-term holders’ activity. This commentary comes as the premier cryptocurrency is currently stuck in a consolidation phase following a flash crash in early February.

Bitcoin STHs Take Profit From Overheated Market – Analyst

In an X post on February 8, Axel Adler Jr explains that Bitcoin Short-Term Holders (STH) i.e. holders of Bitcoin between 1-3 months have been realizing their profits. This development is based on a fall in the STH MVRV – a trading metric that measures market value to the realized value of all Bitcoin held by short-term holders thus helping to determine their profit/loss status.

Generally, an STH MVRV around 1.30-1.35 suggests an overheated market as short-term holders have high unrealized profits indicating potential for a sell-off and price falls. According to Adler Jr., the STH MVRV has recently dropped from 1.35 to average levels meaning a significant portion of STH have closed their positions, helping to cool the market.

Historically, the end of an overheated phase usually translates into a period of price consolidation provided that market demand remains strong. Axel Adler Jr draws a reference to January 2024, when a similar fall in STH MVRV was even strong enough to eventually initiate a price rally. 

However, the crypto analyst cautions that US President Donald Trump’s decisions are largely influencing the current market landscape. This was clearly illustrated last week when the US move to impose new tariffs on China, Mexico, and Canada attracted retaliatory measures causing investors to move funds out of risky assets amidst fears of a brewing trade war.

Axler Adler Jr states that barring any more negative triggers from Donald Trump’s political actions, Bitcoin may break out of its current FOMO-driven consolidation into an uptrend. However, in the case of eventualities, Bitcoin appears to have formed a strong support zone around $90,000 capable of preventing deeper corrections.

BTC Price Overview 

At the time of writing, Bitcoin trades at $96,998 following a 0.98% gain in the last 24 hours. Meanwhile, its trading volume stands at $22.53 billion having crashed by 59.04% in the past day. For the market bulls, relevant resistance levels lie at $102,000 and $106,000. A failure to break above the initial resistance will force Bitcoin to remain in consolidation for the foreseeable future.

Featured image from iStock, chart from Tradingview

The American state of Florida could be one of the pioneering local governments that allows a percentage of its state funds for cryptocurrency investments, particularly Bitcoin.

Florida Senator Joe Gruters has filed a bill that would permit the US state to use 10% of its funds to buy Bitcoin. This political backing could entice other American states to build their own cryptocurrency investments.

My state of Florida introduces a Bitcoin investment bill! 💪
If passed Florida’s CFO may allocate up to 10% of public funds to invest in $BTC or other digital assets.

Thank you Senator Joe Gruters 🫡 pic.twitter.com/nF0SoTbT96

— Lucidvein (@Lucidvein) February 8, 2025

Florida To Invest In Bitcoin

Gruters introduced a legislative measure that would allow Florida to invest in Bitcoin using state funds to combat inflation.

The senator said that Senate Bill 550 proposed to permit Florida’s chief financial officer to use up to 10% of its funds to buy Bitcoin and other cryptocurrencies.

“The state should have access to tools such as BTC to protect against inflation,” Gruters said.

The bill aims to incorporate Bitcoin into state financial planning in the US, a legislative action that could reshape state authorities’ investment funds strategy and lead to other states adopting crypto.

Fighting Inflation With BTC

Gruters eyes that the proposed bill would help financial planners of Florida to hedge against inflation. 

“Inflation has eroded the purchasing power of assets held in state funds managed by the Chief Financial Officer, and this erosion diminishes the value of the state’s reserves, affecting the financial stability and economic security of this state, its taxpayers, and its residents,” Gruters said.

The senator explained in the bill that inflation has “eroded the purchasing power of assets” managed by the state’s chief financial officer, adding that the state is responsible for safeguarding “Florida’s financial resources” against inflation and economic uncertainties.

“Bitcoin is viewed as a hedge against inflation by sovereign nations and prominent investment advisors, including BlackRock, Fidelity, and Franklin Templeton,” he said.

Hence, the American senator explained that Florida should have access to tools like Bitcoin to protect state funds from inflation.

Impact On The State Economy

Once Gruter’s proposed legislation was enacted, it would be beneficial to the state in several ways.

Analysts said that investing in Bitcoin would diversify Florida’s state assets, adding that the state would incorporate in its portfolio an asset that historically provides high returns but with significant volatility.

Market observers added that this crypto legislation would help turn Florida into a blockchain hub that promotes cryptocurrency innovation, further establishing Florida as a crypto-friendly state.

Florida might become the model state for adopting Bitcoin in state financial planning, making BTC adoption in government finance a reality.

Crypto analysts also see that Florida’s success could encourage other states to follow its lead and start incorporating digital assets into their financial systems.

Featured image from Shutterstock, chart from TradingView