This week could mark a historic moment for Bitcoin as the Texas Senate prepares to debate the establishment of a state-backed Bitcoin reserve. However, analysts suggest that this move may be more symbolic than substantial, unless the state simultaneously announces a concrete investment plan.

First Public Hearing

The first public hearing on the creation of a Bitcoin reserve in Texas is scheduled for February 18—less than a week after the bill was submitted to the Senate Secretariat, as listed on the Texas government’s official website.

While this represents a positive step for Bitcoin adoption, Iliya Kalchev, an analyst at Nexo, believes that the hearing may be purely symbolic rather than a groundbreaking development.

“Texas is considering Bitcoin as a reserve asset—another move in BTC’s journey toward institutional legitimacy. But state-level initiatives often create small ripples rather than big waves, especially compared to capital inflows into Bitcoin ETFs or corporate acquisitions,” Kalchev told Cointelegraph.

Kalchev remains optimistic only if the Texas government simultaneously announces an investment program. However, the likelihood of that seems low, as the Senate’s decision will likely take precedence before any financial commitments.

Moreover, governments should not rush decisions on such matters. There is no urgency—Bitcoin isn’t going anywhere, and Texas officials are well aware of this.

Geopolitical Tensions Weigh on Bitcoin’s Price

At the moment, Bitcoin is facing a challenging phase, which, according to Kalchev, is largely due to geopolitical tensions.

These tensions are mainly driven by the global trade war that former President Donald Trump has been escalating. In recent weeks, multiple import tariffs have been announced, though so far, without significant consequences.

Despite this, these developments are not beneficial for Bitcoin, and it’s easy to see why.

No one can predict how Trump’s economic policies will ultimately unfold or how the world will respond.

In other words, uncertainty remains high—not only regarding the trade war but also on a macroeconomic level, especially due to ongoing inflation concerns in the United States.

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Roman B.

I have 6 years of writing experience on several leading websites dealing with cryptocurrencies and other investments. I have been in the Web3 sector for a similar amount of time and have collaborated on several projects from NFT to P2E. My previous experiences: Business2Community.com, TradingPlatforms.com, CryptoSvet.