The Governor of New Hampshire signs a law allowing the state to invest in Bitcoin and cryptocurrencies, with a Bitcoin holding limit of 5% of state total funds.

Breaking news! A state splurges $500 billion into Bitcoin; is the government's leading role in trading crypto a fortune or a trap?

$500 billion! This is not the market value of some tech giant, but the real money that New Hampshire is about to pour into Bitcoin! The governor has just signed the HB 302 bill, directly pushing U.S. state-level cryptocurrency investment to new heights. This place, whose motto is “Live Free or Die,” is demonstrating what it means to “trade cryptocurrencies even wilder than Silicon Valley.”

One, How crazy is the government trading crypto? 5% of financial funds all in on Bitcoin.

The core of the bill is four words: Boldly take action!

- Shocking investment cap: The state treasury can invest 5% of its total funds (about $600 million) into Bitcoin, theoretically allowing purchases up to $500 billion—though don't worry, actual operations will be capped at 5% of state funds.

- Stop-loss life-saving mechanism: All investments must set full stop-losses, such as automatically closing positions if they drop to 80% of the purchase price, to prevent disasters like the 8% single-day crash in December 2024 from happening again.

- Triple security lock: Bitcoin must either be stored in a multi-signature wallet controlled by the state government or held through U.S.-compliant exchange products (such as Bitcoin ETFs), completely eliminating the risk of running away.

Most astonishingly, the bill will not take effect until 60 days after it is signed (i.e., July 6, 2025), allowing the state treasury time to build a blockchain auditing system and risk assessment model, which is akin to 'locking the wallet in a safe before opening it.'

Two, States are competing in cryptocurrency; why is New Hampshire daring to be the pioneer?

This wave of actions is not accidental but a reflection of the state-level cryptocurrency arms race in the U.S.

- Texas has taken the lead: The SB 21 bill allows investment in Bitcoin, targeting a scale of $500 billion, making New Hampshire's $600 million look like pocket change.

- Arizona follows closely: The House just passed a bill allowing 10% of public funds to be invested in Bitcoin, awaiting the Democratic governor's signature. If it goes through, it will become the first state in the U.S. to mandate public fund investment in Bitcoin.

- Universal crypto finance: New Hampshire also allows individuals to donate Bitcoin to the state reserve fund, allowing donors to deduct taxes, truly realizing “the state's citizens trading crypto together, sharing the ups and downs.”

A deeper motivation is to hedge against traditional financial risks. The New Hampshire State Treasurer candidly stated, “When the dollar depreciates like a roller coaster, Bitcoin is our safety belt.” This is consistent with MicroStrategy's logic of holding 499,000 Bitcoins (worth over $46 billion).

Three, Is Bitcoin about to take off? The market is already excited.

The bill just landed, and Bitcoin prices surged by 1.2% within 24 hours, breaking through the $95,000 mark, just a step away from $100,000. Standard Chartered Bank even stated: If all states in the U.S. follow New Hampshire's lead and allocate 5% of their funds to Bitcoin, the price could soar to $150,000 by the end of 2025, possibly even reaching $200,000.

Institutional investors have long been on the move. JPMorgan quietly increased its holdings in Bitcoin mining company stocks, and BlackRock's Bitcoin ETF has seen inflows double compared to the same period last year. Even the Trump administration couldn't sit still, recently signing an executive order to establish a national Bitcoin reserve, permanently banning the sale of 200,000 Bitcoins seized by the judiciary, effectively 'locking' 6% of the circulating supply.

Four, Hidden worries behind the madness: Regulatory minefields and volatility traps.

There are no free lunches; government trading crypto also carries significant risks.

- Regulatory sword hanging overhead: Although the bill requires custodial institutions to meet U.S. standards, the SEC has yet to provide a clear classification of whether Bitcoin is a “security” or a “commodity.” If they turn against it one day, the Bitcoin ETFs held by the state government could directly become “illegal assets.”

- Volatility can trigger heart attacks: Bitcoin's annualized volatility reaches as high as 60%. Even with stop-loss mechanisms, frequent triggers can erode long-term profits. In the December 2024 crash, if stop-loss lines are set too tightly, New Hampshire could directly lose $100 million.

- Political gamesmanship is intense: The Arizona bill narrowly passed in the House by 37:19, and Texas parties are in fierce debate over Bitcoin reserve sizes. New Hampshire's move could become a “hot potato” in the next election.

Five, The future is here: Will government trading crypto become a new trend?

New Hampshire's bill is rewriting the rules of the game.

- Demonstration effects explode: At least 26 states across the U.S. are advancing similar legislation. States like Ohio and Utah have already allowed taxes to be paid with Bitcoin, and North Carolina even plans to invest 5% of state funds into crypto funds.

- Regulatory pressure driven by technology: The state government must develop a blockchain auditing system to track Bitcoin flows in real time, which is more transparent than traditional financial regulation. The U.S. Treasury has already sent people to learn from this and plans to apply this technology at the federal level.

- Global chain reaction: If the EU and Southeast Asian countries follow suit, Bitcoin may transform from a “geek toy” to a “national reserve asset.” Standard Chartered estimates that this structural change could revalue Bitcoin by 2-3 times.

Conclusion: Is this a wise investment or a dangerous gamble?

New Hampshire's bill tears away the conservative veil of traditional finance. When the government starts allocating Bitcoin like a tech company, and when citizens can use cryptocurrency donations for tax deductions, we see not just a $500 billion gamble, but a turning point in an era.

In the future, every state's financial report may include Bitcoin holdings, and no investor's portfolio will be without cryptocurrency. And New Hampshire is pressing the accelerator for this era with 5% of its financial funds. Are you ready to get on board?