Texas Senate to discuss Bitcoin reserve amid market caution

The Texas Senate is scheduled to hold a public hearing on February 18 to discuss establishing a Bitcoin (CRYPTO:BTC) reserve, a move characterised by analysts as largely symbolic without an immediate investment strategy.

The hearing, concerning Senate Bill 21, follows the bill's submission to the Secretary of the Senate.

Iliya Kalchev, a dispatch analyst at Nexo, suggested that while positive, this hearing might only be a "symbolic move" for cryptocurrency markets. 

"Texas considering Bitcoin as a reserve asset is another chess move in BTC’s march toward institutional legitimacy, but state-level initiatives often make ripples, not waves, compared to ETF inflows or corporate treasury allocations," Kalchev stated.

He also noted that unless the hearing reveals a near-term purchase plan or a major policy shift, the market’s response will likely be mild, given Texas’s well-known pro-crypto stance.

Bitcoin has been trading under $100,000 since February 7, reflecting a lack of upside momentum.

Vugar Usi Zade, chief operating officer at Bitget, noted that ongoing trade tensions between the U.S. and China continue to pressure Bitcoin.

"With the US retaining its stance as the largest capital market, geopolitical tensions may continue to witness headwinds for the coin," Zade stated.

Kalchev also pointed out that the U.S. Federal Reserve’s monetary policy significantly drives Bitcoin’s trajectory.

Other states are also considering similar legislation, with Kentucky being the 16th U.S. state to introduce a bill aimed at establishing a Bitcoin reserve.

 At the time of reporting, the Bitcoin (BTC) price was $96,080.50.