Bitcoin Falls to $102K While Nebraska Passes Mining Bill Restricting Operations

Bitcoin BTC/USD has lost 1.34% over the last 24 hours and is trading at $102,259.99. Bitcoin might be in for a tough time, as Nebraska has voted to make life more difficult for Bitcoin miners.

Though it fell on the day, Bitcoin has given 3.47% returns this week, and more than 19% within the month.

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In Nebraska, a new legislation, LB 526, was passed unanimously (49-0) and is likely to be signed into law shortly. It won’t prohibit mining or even directly limit it, but it does impose costs and conditions on big operations. Miners will need to disclose their power consumption, pay for infrastructure upgrades, and accept that the state has the authority to shut down their operations during peak demand.

Marathon Digital, a major mining firm in the United States, operates a large facility in Kearney, Nebraska. If they start to reduce or relocate operations, it might be a precursor to what is going to occur in other states. Marathon has not yet made a public statement, but the industry is taking notice very closely.

Some of the Bitcoin veterans believe that the current price of Bitcoin is undervalued. Blockstream CEO, Adam Back, believes BTC is on its way to $500,000, or even $1 million, before this cycle is over. In a Decrypt interview, Back expressed his confusion as to why the price hasn’t gone higher, considering the flood of institutional funds that have entered the market.

According to Back there isn't a clear logical basis for BTC to be at only $100,000. Recent positive signals like ETF approvals, Wall Street inflows, and President Donald Trump's lenient crypto policy should facilitate a Bitcoin surge. He argued that investors never had this much demand, and it’s only just the beginning.

Bitcoin ETFs from BlackRock, Fidelity, and others have already garnered over $41 billion. Growing access makes it simple for investors with a traditional background to gain exposure to BTC, which will bring fresh money in the space.

However, the short-term scenario might be grim. The overall crypto market cap lost $53 billion in the last few days and stands at $3.27 trillion. Bitcoin has been trapped in a narrow range, not breaking above $105,000, and is now testing support levels once again.

Inflation came in lower than expected last month, fueling expectations that there could be a Federal Reserve rate cut later this year. Rate cuts would be extremely bullish for crypto. But until then, the market is wandering sideways, awaiting either a breakdown or a breakout.

Bitcoin is holding its ground, and only time will tell whether the token would fall to $100,000 or break the $105,000 threshold.

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