Florida’s Insurance and Banking Subcommittee unanimously passed a bill supporting a state-level Bitcoin Reserve. It will now head to the legislature. This is the first state Bitcoin reserve bill to pass the House committee with zero votes against it.

Although most of the initial comments were highly skeptical due to recent market chaos and fiscal conservatism, state sponsor Webster Barnaby and other supporters won them over.

Florida Advances in the State Race for a Bitcoin Reserve

Over the last few months, a spate of Bitcoin Reserve bills has swept through US state legislatures. Although these initiatives have seen setbacks due to funding concerns, they have also had noteworthy successes.

Today, the US crypto industry can count on another win, as Florida’s Insurance and Banking Subcommittee unanimously voted to approve a Bitcoin Reserve:

“Bitcoin Strategic Bill Passes House Committee unanimously. Today’s remarks was a historical moment, and I am proud to have been a part of it with Samuel Armes and Florida. Bitcoin is the PEOPLES currency,” claimed Joshua Jake, who spoke in favor of the initiative.

Florida’s Bitcoin Reserve bill also marks a new milestone, even if it’s only a Subcommittee vote. This bill passed with complete bipartisan support, without a single Democrat siding against the bill.

One of the Representatives either abstained or was absent, but everyone present was swayed by the argument.

The bill proposes that the Flordia state government invest $1.5 billion in public funds to build a strategic BTC reserve.

Although the Subcommittee hearing was initially skeptical, partially due to recent tariff-imposed chaos, sponsor Webster Barnaby maintained an impassioned defense.

By the end, he and the Bitcoin Reserve bill’s other supporters had wholly won over this Florida Subcommittee. From here, it will head to the legislature.

Over 30 states have proposed reserve bills so far. Arizona is currently leading the race, with both of its Bitcoin bills reaching the final stage and waiting for a decision from the Senate.

Meanwhile, similar bills have already failed in five states, including Montana and Wyoming. The fact that Florida’s House Committee showed unanimous support could provide the state with an edge in this race.

On April 10, 2025, the Chinese yuan (CNY) hit its lowest level in 18 years against the US dollar (USD) amid escalating tensions in the ongoing trade war between the two global economic giants. 

This significant milestone in China’s monetary policy has sparked renewed discussions about its implications for the cryptocurrency market—particularly Bitcoin (BTC).

CNY Devaluation Amid US-China Trade War

One must first consider the broader economic context to understand the CNY devaluation. China is under heavy pressure from a trade war with the United States, especially after the US imposed a sweeping 104% tariff on Chinese goods.

In retaliation, China introduced an 84% tariff on imports from the US. These measures have intensified economic friction between the two nations and placed the Chinese currency in a downward spiral.

According to data from TradingView, the USD/CNY reference rate currently sits at 7.3412. Historical data shows that the yuan has fallen to its lowest point since 2007. This suggests that China may intentionally loosen monetary controls to support its export-driven economy as it grapples with slowing growth.

A Bullish Signal for Bitcoin and the Crypto Market

Arthur Hayes, co-founder of BitMEX, highlighted the potential link between the CNY devaluation and Bitcoin’s rise in a recent post on X (formerly Twitter). Hayes noted similar patterns in 2013 and 2015 when Chinese investors turned to Bitcoin as a haven. He predicts a repeat in 2025 as investors seek to shield their wealth from the falling yuan.

“CNY deval = narrative that Chinese capital flight will flow into $BTC,” Hayes remarked.

In 2013, during stringent financial controls in China, Bitcoin emerged as an attractive alternative asset.

“I think the Chinese really look to bitcoin as an excellent digital store of value, sort of like the new electronic version of gold.” said Bobby Lee, CEO of BTC China.

This tendency became even more pronounced due to China’s strict capital control measures. These measures limit individuals from transferring just $50,000 abroad annually. As the yuan depreciates, Chinese citizens see their domestic purchasing power decline, prompting them to seek alternative stores of value.

With its decentralized nature and independence from government control, Bitcoin has become an appealing option.

In 2017, when China tightened capital controls and banned domestic cryptocurrency exchanges, Forbes reported that Chinese investors flocked to Bitcoin to bypass these restrictions. This surge in demand pushed trading volume on platforms like Huobi (HTX) and OKX to record highs.

At one point, these Chinese exchanges accounted for more than 90% of global Bitcoin trading volume. However, as the CNY strengthened, Bitcoin prices fell.

In 2020, the weakening of the yuan again drew analysts’ attention. Chris Burniske, a well-known voice in the crypto space, predicted that a weaker yuan could drive Bitcoin prices higher—mirroring patterns observed in 2015 and 2016. He emphasized that if the CNY continues to fall against the USD, Bitcoin could enter another strong growth phase.

The yuan’s plunge to an 18-year low in 2025 could signal another bullish cycle for Bitcoin. First, strict capital controls remain, limiting Chinese investors’ ability to move wealth overseas. This restriction makes Bitcoin a viable option for capital preservation.

Second, historical patterns reinforce the view that a weakening CNY often coincides with Bitcoin’s upward momentum.

Finally, global market sentiment could shift as investors anticipate capital outflows from China entering Bitcoin, further fueling price gains. As the world watches China’s monetary decisions closely, Bitcoin stands poised to benefit as a hedge against devaluation and a global store of value in uncertain times.

Rumors have been circulating that Strategy will be forced to liquidate its Bitcoin reserves if the price keeps dropping. The specific fears have been overstated, but the fundamental idea might be essentially true.

In any event, both Bitcoin and the firm’s stock price rose substantially after Trump announced a tariff pause. The immediate danger of a selloff has seemingly passed, but these factors may come into play in the future.

Will Strategy Need to Sell Its Bitcoin?

Since Strategy (formerly MicroStrategy) started buying Bitcoin, it’s become one of the world’s largest holders and a major pillar of market confidence.

While this has financially strengthened the company, it also presents certain challenges. Being one of the largest holders, if Michael Saylor’s firm chooses to sell a portion of its holdings, it could impact BTC’s market performance.

Rumors have been circulating that such an event might be inevitable, based on a recent filing. In the SEC filings, the firm writes a disclaimer that without access to favorable equity or debt financing, it could be required to liquidate BTC at a loss.

While the statement exists, it’s not new or extraordinary; it’s a routine inclusion found in MicroStrategy’s previous 10-Q reports from Q1 2024 and prior years.

BeInCrypto reported on Strategy’s Form 8-K when it came out earlier this week, analyzing its implications. The form claimed that Strategy did not buy any Bitcoin last week and has over $5.91 billion in unrealized losses.

“We may be required to take actions to pay expenses, such as selling bitcoin or using proceeds from equity or debt financings, some of which could cause significant variation in operating results in any quarter,” Strategy’s SEC filing claimed.

During the recent market chaos, these unrealized losses caused a lot of distress in the crypto community. However, that doesn’t mean that Strategy will have to dump its Bitcoin soon. In any event, its stock rallied today because of Trump’s tariff pause.

A Few Credible Selloff Scenarios

Although these concerns lack nuance, that doesn’t mean they’re totally unfounded. Michael Saylor claimed that Strategy can pay off its debts even if Bitcoin crashes, but some community members think these claims are either incorrect or deliberate lies.

His stated plan would involve massively diluting stock when he has already sold huge volumes.

In fact, several scenarios could force Strategy to sell its Bitcoin. If its price were to fall significantly and stay low, Strategy’s ability to meet debt obligations without tapping its BTC treasury could become strained.

The firm’s low revenue from its non-BTC business ventures would further exacerbate this problem.

Additionally, Strategy has used Bitcoin as collateral for loans on several occasions. If BTC drops below collateral thresholds, margin calls could force partial liquidation. However, such scenarios would be outlined in specific loan agreements, not general filings.

Above all else, the appearance of forced selling can seriously impact market sentiment, which is why these rumors are so serious.

Strategy’s stock price and Bitcoin are both riding high right now, and selloff fears seem less imminent. Yet, the fundamental macroeconomic situation remains unchanged. If Bitcoin falls again, MSTR’s debt position in the market will likely be impacted.