Bitcoin Retreats Below $96K as Arizona Rejects Bitcoin Reserve Bill
Bitcoin (BTC) dipped 0.98% on Saturday, May 3, closing at $95,988 after Arizona Governor Katie Hobbs vetoed a landmark bill that would have made Bitcoin part of the state’s official reserves. Despite the decline, BTC managed to stay above the $95,000 support zone for the second consecutive day, suggesting strong underlying demand.
Governor Hobbs emphasized that Arizona’s pension funds should not be exposed to the “untested” volatility of virtual assets, stating: “Arizona’s retirement system remains strong because it makes sound and informed investments. Virtual currency doesn’t meet that threshold.”
This decision may reflect broader Democratic skepticism toward crypto adoption and could complicate Senator Cynthia Lummis’ push for the national Bitcoin Act, which proposes the U.S. acquire 1 million BTC over five years.
BlackRock Leads Weekly ETF Inflows Despite Political Roadblocks
While political developments dampened sentiment, institutional interest remained high. BTC-spot ETFs saw $1.8 billion in net inflows last week, with BlackRock’s iShares Bitcoin Trust (IBIT) contributing an impressive $2.48 billion. In contrast, the ARK 21Shares Bitcoin ETF (ARKB) and Fidelity’s FBTC posted outflows of $457.6 million and $201.1 million, respectively.
Nate Geraci, President of ETF Store, noted that IBIT ranked among the top 10 ETFs in inflows year-to-date, highlighting its growing dominance in the ETF space. Since its launch, BlackRock’s IBIT has attracted over $43 billion in total inflows.
Bitcoin Outlook: Key Drivers and Scenarios to Watch
Traders are closely monitoring several macro and political catalysts that could shape BTC’s short-term direction:
- U.S.-China Trade Relations: Any escalation could renew risk-off sentiment, boosting BTC’s appeal as a safe-haven.
- U.S. Economic Data: Recent strong Nonfarm Payrolls (NFP) figures reduce chances of near-term Fed rate cuts.
- Bitcoin Act Progress: Momentum on the Lummis-backed Bitcoin acquisition bill could spur speculative interest.
- ETF Flows: Sustained ETF inflows, especially from major institutions, remain a vital bullish signal.
Technical Analysis: BTC Still in Bullish Territory
- Upside Potential: A break above the May 2 high of $97,997 could pave the way toward the psychological $100,000 level and eventually the all-time high of $109,312.
- Support Zones: Immediate support lies at $95,000. A drop below this could bring $90,742 and the 50-day EMA into view.
- RSI Analysis: The 14-day RSI sits at 66.43, indicating BTC has room to rise before becoming overbought.
Ethereum Update: ETF Inflows and Price Struggles
Ethereum (ETH) also saw positive ETF flows, with $106.8 million in net inflows last week. However, ETH continues to trade below both its 50-day and 200-day EMAs, signaling persistent bearish pressure.
- Key Resistance: A break above the $2,000 mark would shift sentiment, with the next target at $2,308.
- Support Levels: Below $1,750, ETH could test the April 22 low at $1,538.
- RSI Reading: Currently at 57.96, ETH still has room for a bullish push before hitting overbought territory.
Conclusion
Bitcoin’s rejection at the state level was countered by massive institutional interest via ETF inflows, especially from BlackRock. While political headwinds remain, strong macro support and technical signals continue to underpin a bullish longer-term outlook for both BTC and ETH. For daily crypto forecasts, technical analysis, and real-time updates, visit www.dailyforex.pk.