In a historic and unprecedented move in the United States, Texas Governor Greg Abbott signed a new law (SB-21) ordering the use of $10 million of tax money to buy Bitcoin, with the state retaining it as a long-term reserve asset outside the traditional financial system. This is the first time a U.S. state has used public funds directly to purchase a digital asset like BTC.

What makes this move even more powerful is a complementary law (HB-4488) that prevents the state from easily selling this Bitcoin in the future, meaning that these coins will be protected from political selling decisions or temporary fluctuations. The goal is clear: to build a new type of independent reserve, outside the control of central banks, and fortified against inflation or financial emergencies.

Arizona and New Hampshire have passed similar laws before, but without actual funding monitoring. Texas here has not only legislated but has actually moved to purchase, giving it a leading position in adopting Bitcoin at the local government level.

Why does this matter to you as a trader or investor in cryptocurrencies?

A new official buyer has entered the market: Texas now represents a government demand that does not sell quickly but retains what it purchases, which puts pressure on the supply side.

Only $10 million? Yes, but the effect is symbolic and strategic: If the experiment proves successful, Texas may later allocate larger percentages of the emergency budget or financial reserves to purchase more.

The buying contagion may spread: The entry of an official entity the size of a U.S. state creates a moral pressure on other states or even major municipalities to adopt similar steps, especially amid the rising national discussion about the sovereignty of currency and alternatives outside the dollar.

Reducing supply on the platforms: Every Bitcoin that enters the hands of a local government or an ETF fund reduces the liquidity available in open markets, increasing the chances of an upward trend in any subsequent demand wave.

Impact in the medium term

Technically, the entry of a government player that retains the currency instead of trading it equates to adding a "heavy buyer" that complicates any major market correction. This is not a speculator looking for a quick sale, but an entity that preserves the currency for years, fundamentally reshaping the demand and supply curve.

If this dynamic continues—states buying, ETF funds withdrawing supply, and miners producing at a slower pace after the halving—it is natural to expect that price determination will gradually shift from speculators to institutions that do not sell easily.

Simplified summary: Texas officially bought Bitcoin and is going to keep it in its treasury without selling it. This means that the buyer you see in the market has become a government entity with political weight, which does not sell on rumors or minor drops, putting pressure on supply and opening the door for unexpected rises if this step is repeated by other entities.
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