The first state-level Bitcoin Reserve bill in the US is now fully approved, as New Hampshire’s Governor Kelly Ayotte signed it into law today. This makes New Hampshire the first state to get such a plan across the finish line.
Although Florida and Arizona saw recent setbacks, a victory in New Hampshire is a substantial accomplishment.
However, New Hampshire has bucked this trend, creating the US’s first Strategic Bitcoin Reserve/
New Hampshire is once again First in the Nation!
Just signed a new law allowing our state to invest in cryptocurrency and precious metals. pic.twitter.com/ua9bawZKbM
— Governor Kelly Ayotte (@KellyAyotte) May 6, 2025
This Reserve bill puts New Hampshire at the head of the country in a few ways. In addition to allowing the state to purchase and hold Bitcoin, there is another interesting aspect.
Specifically, the law is not exclusively tailored to Bitcoin. It allows the state to purchase any cryptoasset with a market cap over $500 billion. Today, that’s only BTC, but others could join.
New Hampshire’s successful effort will encourage other Bitcoin Reserve bills and provide valuable data on how this system works in practice. Other state governments can learn from New Hampshire’s successes and failures to refine their own legal initiatives better.
Meanwhile, Trump’s national Bitcoin Reserve plan is still unclear. The initial executive order provided a 60-day deadline for the Treasury to assess the plans for a digital asset reserve. That deadline ended yesterday, but no concrete update has been given yet.
As of now, the Governor has not specified the amount of BTC the state will purchase. However, according to the bill, New Hampshire can allocate a maximum of 5% of total state funds to purchasing Bitcoin.
For 2026-2027, the state’s total fund is $16 billion in expenditures. So, it will be interesting to see how much of that will be allocated for BTC.
“Ripple can, will, and should act in its own interest,” said David “JoelKatz” Schwartz in response to criticism regarding the firm’s XRP sales.
Ripple Labs is free to sell XRP tokens to raise operational capital, according to comments from the company’s chief technology officer. His remarks have sparked concerns among cryptocurrency investors.
“XRP isn’t a security because Ripple doesn’t actually owe you ‘utility’ or anything else,” Pierre Rochard, vice president of research at Riot Platforms, wrote in a March 5 X post.
“They are free to dump on you and you have no right to do anything about it other than join them in dumping XRP,” Rochard said, cautioning that investors are “not investing in Ripple,” just “getting tokens created out of thin air dumped on you.”
Amid global economic volatility, the United States has again raised its debt ceiling to avert a default and ensure the government’s operations continue smoothly.
The US debt ceiling is a legal limit on the amount the federal government can borrow to meet its financial obligations, including pension payments, social welfare programs like Social Security and Medicare, and interest on government bonds.
US Debt Ceiling Increase
Raising the debt ceiling remains contentious, often sparking heated debates between Congress and the White House. Negotiations over spending and budgets are typically prolonged and complex.
According to data from the Senate Joint Economic Committee (JEC), the US national debt has surpassed $36.2 trillion as of April 2025. This marks a significant rise from $22 trillion in March 2019, highlighting the rapid escalation of national debt in recent years.
Historically, raising the debt ceiling is not uncommon. According to NPR, since 1960, Congress has acted 78 times to increase, temporarily extend, or revise the debt ceiling definition—49 times under Republican and 29 times under Democratic presidents. This reflects the recurring need to adjust the ceiling to maintain government functionality, but it also raises questions about the long-term sustainability of US fiscal policy.
Under President Donald Trump’s administration, bold economic policies are being implemented, including using tariff revenues to service debt. Trump has imposed a 125% tariff on Chinese goods, prompting retaliatory 84% tariffs from China on the US. imports.
Consequently, the Chinese yuan (CNY) has hit an 18-year low, with the USD/CNY rate reaching 7.394. The yuan’s depreciation escalates trade tensions and ripple effects across cryptocurrency markets.
Impact on Crypto
The increase in the US debt ceiling has multifaceted implications for the crypto market, both in the short and long term.
Raising the debt ceiling helps the US avoid default, preventing a potential global financial crisis. This often reassures investors, boosting confidence in traditional financial markets like stocks and US Treasury bonds. As a result, demand for safe-haven assets like Bitcoin—usually viewed as a hedge during economic uncertainty—may decline.
Historical trends support this. During past debt ceiling crises, such as in 2021, Bitcoin prices surged as investors feared a US default. However, the pressure eased once the ceiling was raised, prompting some investors to shift capital back to traditional assets. This can create downward price pressure on Bitcoin and other altcoins.
Additionally, a weaker yuan due to US policies could drive capital from China into cryptocurrencies, potentially providing a positive push for the market.
Continually raising the debt ceiling allows the US government to borrow more to fund spending, often leading to increased money printing or issuance of Treasury bonds. This process expands the money supply, fueling inflation and eroding the US dollar’s value.
Cryptocurrencies, particularly Bitcoin, are often regarded as an “inflation hedge” due to their fixed supply and decentralized nature. Investors increasingly turn to alternative assets to preserve wealth as the dollar weakens. Bitcoin, often dubbed “digital gold,” has proven its resilience during past economic instability.
The increase in the US debt ceiling has a complex impact on cryptocurrencies. In the short term, it may reduce demand for safe-haven assets like Bitcoin as confidence in traditional markets grows.
However, in the long term, persistent debt ceiling hikes could drive inflation and weaken the dollar, positioning cryptocurrencies as a compelling hedge and alternative asset class.
Avalanche (AVAX) price has been unable to reclaim the $20.00 support level after falling through it in the recent correction. The altcoin is now trading well below that key mark despite a noticeable decline in selling pressure.
However, bullish momentum has not been strong enough to counter prevailing bearish cues.
Avalanche Investors Are Not Selling
Analyzing the active address profitability reveals that less than 3% of current participants are in profit. This data highlights a crucial detail: most AVAX holders are unwilling to sell at a loss. Instead, they appear to be HODLing in anticipation of a recovery. This lack of selling is a bullish indicator.
The patience shown by investors during this downturn could help Avalanche establish a stronger base once broader market conditions stabilize. As fewer holders are actively selling, downward pressure on AVAX’s price is reduced. Given the right market catalysts, this opens a window for the altcoin to bounce back.
Avalanche Addresses by Profitability. Source: IntoTheBlock
Despite low selling activity, the technical indicators continue to signal weakness. The Relative Strength Index (RSI) has dropped back into the bearish zone after a brief recovery attempt. This suggests a lack of buying pressure and continued uncertainty among investors.
Market support has been lacking for AVAX in recent sessions, preventing a meaningful rebound. The altcoin is facing consistent resistance and has failed to generate strong upward momentum.
The RSI trend reinforces that the macro environment is still leaning bearish, keeping Avalanche subdued.
Avalanche is currently priced at $17.19, marking a 25% decline over the past two weeks. The sharp drop came after AVAX failed to break through the $22.87 resistance level. This rejection led to the current consolidation below $20.00, with bulls unable to reverse the trend.
Given the existing market cues, Avalanche may struggle to reclaim $18.27 as a support level. If the altcoin fails to secure this level, it risks dropping further to $16.25. This would deepen investor losses and delay any chances of recovery.
On the upside, a key shift would occur if AVAX can flip $19.86 into support. This would suggest strengthening bullish sentiment and open the door for a rally toward $22.87. Reclaiming this level could allow Avalanche to recover some recent losses and restore investor confidence.
