El Salvador also continued accumulating Bitcoin despite an IMF deal requiring certain regulatory adjustments, and added 12 BTC to its reserves. In the US, Ohio introduced a bill to invest state funds in Bitcoin and establish a Bitcoin reserve fund, joining a growing number of states exploring crypto investments. Despite institutional and governmental adoption, Bitcoin’s price action is still very unpredictable, which is causing frustration for traders. Semler Scientific Increases Bitcoin Stash The healthcare technology and software firm Semler Scientific expanded its Bitcoin holdings by acquiring 871 BTC between Jan. 11 and Feb. 3 for $88.5 million. The purchases were made at an average price of $101,616 per Bitcoin, and pushed the company's total holdings to 3,192 BTC. The firm’s investment is now worth approximately $313 million, and was funded through a senior convertible notes offering and the partial monetization of its minority investment in Monarch Medical Technologies. Press release from Semler Scientific Since adopting its Bitcoin treasury strategy, Semler reported some very impressive gains. From July 1, the first full quarter under this strategy, to Feb. 3, the company achieved an aggregate yield of 152%, with a 22% gain in 2024 alone. The firm’s Bitcoin accumulation ranks it as the 13th-largest corporate holder of BTC, according to Bitcoin Treasuries . Semler’s commitment to its Bitcoin strategy was cemented on Jan. 23 when it announced plans to raise $75 million through a private offering of convertible senior notes. Semler Scientific chairman Eric Semler is very excited about the company’s growing Bitcoin stockpile, and revealed plans to monetize part of its investment in Monarch Medical to buy more BTC. In November, CEO Doug Murphy-Chutorian also mentioned that the firm has a long-term focus on Bitcoin accumulation. While Semler continues to expand its holdings, MicroStrategy, the world’s largest corporate holder of BTC, decided to pause its purchases. On Feb. 3, MicroStrategy confirmed that it will hold its existing 471,107 BTC, which is currently valued at around $46 billion, without further acquisitions for the time being. El Salvador Keeps Buying Bitcoin Despite IMF Deal El Salvador also continued to expand its Bitcoin reserve by recently purchasing 12 BTC during a market dip. The country bought 11 BTC on Feb. 4 for just over $1.1 million at an average price of $101,816 per coin, followed by an additional 1 BTC at $99,114. This brings its total Bitcoin holdings to 6,068 BTC, which is valued at over $554 million. The country’s Bitcoin Office mentioned its growing holdings in a recent post on social media, and pointed out that El Salvador accumulated 21 BTC in the past week and 60 BTC over the last month. The purchases happened shortly after President Nayib Bukele secured a $1.4 billion financing agreement with the International Monetary Fund, which required El Salvador to scale back some of its Bitcoin-related initiatives. Some of the changes included making Bitcoin acceptance voluntary for the private sector and reducing government involvement in the Chivo wallet. Congress quickly amended the country’s Bitcoin laws to align with the IMF deal, and passed the legislation just minutes after Bukele submitted it. Despite these adjustments, the government did not stop its Bitcoin acquisitions. The day after finalizing the IMF agreement, El Salvador bought $1 million worth of Bitcoin. Bitcoin Office Director Stacy Herbert also previously reassured that the country's Bitcoin plans remain unchanged, and a spokesperson stated that purchases would continue and are actually expected to intensify in 2025. Ohio Moves to Invest State Funds in Bitcoin Meanwhile, an Ohio lawmaker introduced a bill to allow the state to invest in Bitcoin and establish a local reserve fund for the cryptocurrency. Ohio Senate Bill 57 was referred to the Financial Institutions, Insurance, and Technology Committee on Jan. 29, and will allow the state’s treasurer to invest state funds exclusively in Bitcoin to create an “Ohio Bitcoin Reserve Fund.” The bill mandates that Bitcoin investments must be held for at least five years and stored with secure custody solutions. Ohio Senator Sandra O’Brien introduced the bill on Jan. 28. She stated that Ohio should take the lead in crypto adoption, and believes that cryptocurrency will play a major role in Donald Trump’s presidency. The former president recently signed an executive order establishing a crypto working group to explore initiatives like a potential national digital asset stockpile. The proposed legislation also includes provisions requiring state entities and government agencies to accept cryptocurrency payments for taxes, fees, fines, and other charges. Any crypto received will then be converted into Bitcoin and transferred to the reserve. Additionally, the bill allows Ohio residents, state agencies, and universities to donate Bitcoin to the fund, and a recognition program will acknowledge large contributors. Ohio has seen multiple Bitcoin-related legislative efforts over the past few months already. In December, House Republican leader Derek Merrin introduced the Ohio Bitcoin Reserve Act, which will give the state treasurer the flexibility to allocate Bitcoin to a reserve fund. Merrin is especially concerned about the rapid devaluation of the US dollar and argued that Bitcoin should be considered a viable asset for Ohio’s financial security. In September, Ohio Senator Niraj Antani also introduced a bill allowing the state to accept cryptocurrency for tax and fee payments. States considering crypto investments (Source: Bitcoin Reserve Monitor ) The number of US states considering crypto investment legislation is still growing. In late January, a Utah House committee advanced a bill that will allow the state to invest a portion of public funds in cryptocurrency. Ohio is now among twelve states that proposed similar measures. Bitcoin’s Price Action is Frustrating Traders Although US states and institutional investors are going big on Bitcoin, average traders are having a much harder time. The crypto market is defying expectations, leaving traders uncertain about its direction. Despite a series of pro-crypto moves from the US government and President Donald Trump, the market continues to retrace, which is frustrating investors who expected a more bullish response. Trader Sykodelic shared their confusion about the market’s lack of clear trends, and mentioned that it no longer follows predictable patterns. Another trader, The Bitcoin Therapist , suggested that Bitcoin is very undervalued, and estimated that it should be priced between $50,000 and $100,000 higher than its current levels. They also predicted a sudden and dramatic repricing in the near future. Market sentiment has also shifted dramatically. The Crypto Fear & Greed Index , which tracks investor emotions, fell to a neutral score of 54 on Feb. 5, dropping from a greed score of 72 just a day earlier. This shift happened after widespread expectations that Bitcoin dominance would peak with Trump’s election victory and speculation about the US establishing a Bitcoin reserve. Bitcoin dominance currently stands at about 61.47%, which is already more than analyst Benjamin Cowen’s August prediction that it would top out at 60% before altcoins gained more traction. With Bitcoin’s pricing dynamics behaving unpredictably, traders are left questioning whether the altcoin cycle will arrive as expected or if broader market forces are at play.
