Texas has become the third US state to formally create a Strategic Bitcoin Reserve with the historic signing of SB 21 into law. Armed with the newly minted law, the state of Texas will buy and hold Bitcoin via the office of the state comptroller. Texas Creates Strategic Bitcoin Reserve Into Law Emerging reports from
Bitcoin’s supply in profit has continued to rise steadily despite recent setbacks and persistent market headwinds.
On-chain data shows that over 85% of BTC’s circulating supply is currently in profit. This is a historically bullish signal but often marks the beginning of euphoric phases in market cycles.
BTC Enters Bullish Territory, but Analysts Warn of Possible Pullback
BTC’s supply in profit measures the percentage of coin holders who acquired their assets at prices lower than the current market value. When this number rises, it indicates broad investor confidence and strong capital inflows into the asset.
In a new report, pseudonymous CryptoQuant analyst Darkfost found that more than 85% of BTC’s circulating supply is currently held in profit. Although this trend represents a bullish signal, it comes with a catch.
“Having a large portion of the supply in profit is not a bad thing, quite the opposite. Of course, there are certain levels that are more “comfortable” than others, but generally, an increase in the supply in profit tends to fuel bullish phases,” Darkfost wrote.
According to the analyst’s note, the market is now entering the euphoric zone, a phase that emerges when the profit supply approaches or exceeds 90%. These levels, while bullish, have often coincided with local market tops as traders begin to lock in profits, triggering short- to medium-term corrections.
“Historically, when the supply in profit surpassed the 90% threshold, it consistently triggered euphoric phases, and we are now approaching that level. However, these euphoric phases can be short-lived and are often followed by short- to medium-term corrections.”
Funding Rate Signals Market in Wait-and-See Mode
Interestingly, BTC’s funding rate remains relatively balanced, indicating that the market is in a state of anticipation. At press time, the coin’s funding rate is 0%.
The funding rate is a periodic payment between traders in perpetual futures markets, used to keep contract prices aligned with the spot market. As with BTC, when an asset’s funding rate is 0%, it indicates a neutral market sentiment, where neither long nor short positions dominate.
This signals that BTC investors are waiting for a catalyst to provide clearer direction. This neutral market sentiment and rising profit supply set the stage for potential price volatility in the near term.
Bitcoin Holds Firm Below Resistance
At press time, the king coin trades at $95,125, resting below a major resistance level of $95,971. Despite recent market volatility, BTC demand among spot market participants remains significant, as reflected by its Relative Strength Index (RSI), which currently stands at 68.21.
The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a price decline. Converesly, values under 30 indicate that the asset is oversold and may witness a rebound.
BTC’s RSI reading indicates room for further price growth before the coin becomes overbought. If demand strengthens, the coin could break above the $95,971 resistance and rally to $98,983.
Solana (SOL) price tumbles as Bitcoin and SUI steal the show this week
Solana (SOL) price fell short of investor expectations this week as capital inflows favored market leaders Bitcoin and emerging altcoins like SUI.
The global crypto market trended bullish on Friday, with Bitcoin price gaining 0.3% on Friday and 2.1% over seven days.
Meanwhile, Solana slipped 1.7% on the day and a steeper 1.9% over the week.
Top 10 Cryptocurrencies Performance, May 2, 2025 | Source: Coingecko
The figures suggest a noticeable exit of short-term traders from SOL, as they rotated funds into assets with stronger short-term narratives.
A major catalyst driving Bitcoin’s rise continues to be institutional accumulation, with spot Bitcoin ETFs posting record-breaking inflows.
Meanwhile, SUI surged following news that 21Shares filed for a spot ETF with the U.S. SEC. SUI spiked to $3.71 on Thursday before correcting to $3.40 at press time, still up nearly 60% in the past two weeks.
This stark contrast reflects a pattern of selective capital rotation among traders seeking profitable opportunities within short-term market narratives.
SOL price fell below $150 on Friday, flipping negative on the weekly candle and highlighting a lack of short-term bullish conviction.
Solana investor Eric Trump warns banks to adopt crypto within 10 years
Adding to Solana’s long-term narrative, Eric Trump, a known investor in Bitcoin, Ethereum, Solana, and SUI, made headlines this week with a stark warning to traditional financial institutions.
In an interview with CNBC, Trump cautioned that banks risk extinction within a decade if they fail to integrate cryptocurrency infrastructure into their core operations.
Systems like SWIFT are a disaster. The traditional banking system is slow and inefficient.
Right now, you can open a cryptocurrency app and transfer money from wallet to wallet instantly, without any bank fees.
I’m telling you if banks don’t realise what’s coming they will be gone in 10 years – Eric Trump, May 2025
Trump remarked, criticizing the inefficiency and cost of the existing financial system.
He argued that decentralized finance (DeFi), enabled by blockchain platforms like Ethereum and Solana, presents a far superior alternative in speed, accessibility, and cost-effectiveness.
The timing of Eric Trump’s statements is crucial, with Congress fast-tracking Stablecoin regulations and SEC dropping charges on crypto trading platform, an Arizona state passing a bill to launch the first cryptocurrencies strategic reserve. and institutional adoption deepens, tokens like Solana could see renewed long-term demand.
This long-term bullish outlook as seen Solana bulls speculate on a potential rally toward the $750 mark if market conditions align.
While this ambitious Solana price forecast remains plausible, technical indicators SOLUSD daily chart shows highlights key hurdles ahead around the $160 mark.
Solana Price Forecast Today: Bulls Target $156 If Support Holds Above $142
Solana (SOL) is trading at $147.98 after a modest 1.9% decline, but the broader technical setup continues to favor a bullish continuation. The price remains comfortably above the midline of the Bollinger Bands, suggesting that recent consolidation may be a temporary pause rather than a reversal.
The Parabolic SAR indicators, positioned below current price levels since mid-April, continue to signal a sustained uptrend, despite Thursday’s slight retracement.
Solana Price Forecast Today
SOL price forecast today leans cautiously optimistic, supported by underlying momentum shown in the Bull Bear Power (BBP) oscillator, which remains positive at 8.13. This indicates that bulls still hold the short-term advantage.
The daily close remains above the 20-day moving average near $142 and well above the lower Bollinger Band at $124.77, reinforcing the view that key support zones are intact.
The resistance zone around $156, marked by the upper Bollinger Band and previous local highs, represents the next test for buyers. If bullish volume resumes and price action closes decisively above $150, a retest of $156 appears likely. A failure to hold $142, however, could expose downside risk toward $135.
Amid the Donald Trump election win, the Bitcoin price rally resulted in creating a new ATH, surging almost twice its value within months. This gained the world’s attention, as such high returns and success of Bitcoin ETF resulted in many institutional buyers holding on to BTC. Recently, the Coinbase executive pitched a plan for the US government to buy $100 billion of BTC in 2025. Not only can this benefit them, but a massive rally could form for the token. Let’s discuss the potential impact.
Bitcoin Price News: Gold Reserve Revaluation Could Support $100 Billion Bitcoin Buying
Coinbase Asset Management President Sebastian Bea recently appeared on The Scoop with Frank Chaparro, which was released on Wednesday, and discussed various points around Bitcoin. However, the highlight became the fact that the US government could buy $100B worth of BTC at the current Bitcoin price.
COINBASE JUST SAID THE USA LIKELY TO BUY $100 BILLION BITCOIN SOON
Although this was not a speculation, but rather a roadmap on how the government could get into Bitcoin buying. He disclosed that if the government reevaluated its gold held in Fort Knox at $42 an ounce to the current price, it could bring a gain of $900 billion to a trillion.
Out of this, the $100B could be easily allocated to the Bitcoin buying for Donald Trump’s US strategic Bitcoin reserve.
Today, the US government still values gold held in Fort Knox at $42 an ounce. If they mark that to current market prices, it would create a mark-to-market gain of roughly $900 billion. That $100 billion is a relatively small portion of the $900 billion gain, so it’s a feasible, significant position. This would be a huge change, showing the government’s commitment to Bitcoin as a strategic reserve.
He further claimed that the US government’s initiation could influence others to do the same, as they have been doing with gold. He cited the rising adoption and evolving demand, before revealing it’s hard not to be bullish on Bitcoin with all these.
Why This Could Send Bitcoin Price to $500k?
The U.S government’s Bitcoin buy would bring strong institutional validation for the crypto token, affecting the Bitcoin price dynamic. BTC has been doing significantly well on its own, and the recent institutional adoption, especially with El Salvador, BlackRock, and MicroStrategy Bitcoin buying, and others, has fueled the demand further.
The government’s buy would push it to another level. The $100 billion buy would reduce the availability of BTC in the market, as there’s a limited supply. As a result, this could put upward pressure. More importantly, it would influence others to do the same in an ‘arms race’, generating positive momentum.
Although the trajectory is unpredictable, the BTC price would fuel immense upward pressure.
Will it hit $500k Next?
Experts have been anticipating extreme bullish moves for this cryptocurrency over various parameters. Multiple Bitcoin price predictions, including Dave the Wave, see BTC hitting $200k by 2025 end, without government stimulus.
Interestingly, Ark Investment has redirected its BTC price target to $2.4B by 2030 based on active supply, bull case, and various assumptions. US government Bitcoin buying could be the catalyst to $500k, but there’s no confirmed trajectory.
Previously, Bitwise CIO anticipated the $500k target in case of any country’s strategic Bitcoin reserve. If the US did, this could likely happen.