Bitcoin Price Holds As ETF Inflows Surge, Connecticut Ban Fuels Regulatory Tensions

Bitcoin BTC/USD is at $110,300, after slipping 0.5% in the last 24 hours, hovering near recent highs and facing mild resistance at $111,000. The price action comes amid $431 million in ETF inflows, and Connecticut's sweeping crypto ban for public entities.

U.S. Bitcoin ETFs logged $431 million in inflows driven by renewed institutional interest, with BlackRock Inc BLK and Fidelity National Financial Inc FNF leading the charge. Despite the influx, Bitcoin's price held steady as futures open interest slipped and option demand rose. The divergence points to cautious sentiment building under the surface, as traders lock in gains and brace for possible volatility. While ETF flows reflect long-term bullish positioning, short-term momentum may be fading.

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Meanwhile, in a significant departure from national momentum, Connecticut has enacted a sweeping ban on government crypto investments, outlawing the use, holding, or acceptance of virtual currencies across all public entities. The new law imposes strict consumer safeguards and rewrites key financial statutes, signaling a firm institutional rejection of Bitcoin. While dozens of other states are moving toward digital asset reserves, Connecticut's legislation marks a regulatory hardline, deepening the divide in America's crypto policy landscape.

Following a $110 million purchase that pushed its total to 582,000 BTC, Strategy MSTR holds nearly 3% of all Bitcoin. While the analytic and software company has boosted institutional demand and prices, Swiss crypto bank Sygnum warned that the concentration poses systemic risks. If Strategy reaches its 5% goal, Bitcoin could become less viable as a reserve asset, which is a critical blow to central bank adoption hopes.

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Strategy's stock is rising with BTC, enabling more capital raises and BTC buys, but a downturn could force liquidation, shaking market confidence. Sygnum calls the approach a high-beta leverage model.

Bitcoin miner firm, IREN Ltd IREN, is raising $450 million through a private sale of convertible senior notes, with an additional $50 million option for initial buyers. A portion of the funds will support capped call transactions and a $100 million prepaid forward share repurchase, aimed at mitigating dilution and stabilizing share prices. With 2,910 MW of grid-connected power across North America, IREN's move signals an aggressive bet on scaling both Bitcoin mining and AI data centers.

American Bitcoin has stacked 215 BTC, valued at $23.7 million, cementing its deep stake in the crypto reserve race. The firm, launched in April and backed by Donald Jr. and Eric Trump, calls Bitcoin its core business. It plans to go public via a Gryphon Digital Mining merger by Q3 2025, joining over 100 public companies holding BTC, echoing Michael Saylor's Strategy model.

Bitcoin is trading at $110,300, down 0.5% after rejecting $111,800 resistance. RSI at 63.4 signals bullish bias without overbought risk. Holding above its 20-day EMA ($108,900) and 50-day EMA ($105,400), it's confirming a medium-term strength. MACD momentum is weakening. Futures open interest fell 2.1%, while options show rising put-call ratios, hinting at hedging activity. Key support sits at $107,500, with stronger demand near $103,800. Bulls must break $112K to regain upside momentum.

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