Bitcoin (BTC) is once again making headlines as its price flirts with new all-time highs following a significant legislative development in Texas. The cryptocurrency briefly surged past $107,000 on Tuesday, May 20, as news broke that the Texas House of Representatives had passed the second reading of the Strategic Bitcoin Reserve (SBR) bill, also known as SB 21. This milestone has injected new optimism into the market, with analysts now eyeing a potential breakout to as high as $137,000 in the near term.

The SB 21 bill, which proposes the creation of a state-managed Bitcoin reserve, received overwhelming support in the Texas House, with 105 votes in favor and just 23 against. The bill now moves to a final vote after clearing this critical hurdle, and supporters are confident that Texas is on track to become the third U.S. state to officially adopt such legislation. Dennis Porter, CEO and Co-founder of the Satoshi Action Fund, noted that the momentum behind the bill reflects growing political and economic recognition of Bitcoin’s role in the future financial system.

The bill has been championed by Representative Giovanni Capriglione and Senator Charles Schwertner, who have emphasized the strategic importance of accumulating Bitcoin as a reserve asset. If the legislation is fully enacted, Texas could potentially authorize the purchase of up to 1 million BTC over the next five years. This unprecedented move would mark one of the largest institutional accumulations of Bitcoin to date and could significantly impact market dynamics over the long term.

The market has responded swiftly to the news. Bitcoin spiked to a local high of $107,307 late Tuesday during the North American trading session. Although the price remains just short of its current all-time high of $109,114, set on January 20, 2025, the technical indicators suggest that a breakout is increasingly likely. According to market analyst Aksel Kibar, Bitcoin’s price action is showing signs of renewed strength, fueled by institutional demand and an increasingly tight supply.

One of the most compelling bullish signals comes from on-chain data showing that the supply of Bitcoin held on centralized exchanges has dropped to its lowest level since November 2018. This indicates that more investors are opting to hold their coins in private wallets, reducing the immediate selling pressure and setting the stage for a supply squeeze. Historically, such conditions have often preceded major price rallies, especially when combined with heightened demand from large buyers.

From a technical perspective, Bitcoin has been trading within a strong upward channel since the start of Q2 2025. The recent bounce off the $102,395 support level reaffirmed bullish sentiment, and analysts now suggest that as long as BTC stays above this threshold, the path toward higher price targets remains intact. Kibar’s analysis points to a near-term breakout toward $137,000, provided the market maintains its current momentum and macroeconomic conditions remain favorable.

However, it’s not all clear skies. A potential risk remains if Bitcoin fails to hold above the $102,395 support level. A decisive drop below this zone could undermine the bullish setup and open the door for a correction below the psychological $100,000 mark. Traders and investors alike are closely watching this level as a line in the sand for the ongoing rally.

The Texas legislation could also serve as a broader catalyst for similar initiatives across the U.S. and globally. With the federal government still exploring its stance on Bitcoin reserves and digital asset frameworks, states like Texas are taking the lead in shaping a new era of crypto-centric fiscal policy. If the bill passes its third reading and is signed into law, it will send a strong message to other jurisdictions considering similar actions.

In conclusion, Bitcoin’s latest price surge is more than just a reaction to market speculation—it reflects a deeper shift in how major institutions and governments perceive the digital asset. As Texas inches closer to creating a state-backed Bitcoin reserve, the move could further legitimize Bitcoin as a strategic financial tool. Combined with dwindling exchange supply and strong technical support, BTC may very well be on the brink of its next historic rally.