Bitcoin Price Rips Through $86K As Strategic Reserve Push Gains Global Traction

Bitcoin Price Rips Through $86K As Strategic Reserve Push Gains Global Traction

Bitcoin BTC/USD is trading over 2% higher on Tuesday at $86,328, extending its recent rally and continuing to decouple from equity markets amid renewed interest in the asset as a sovereign reserve. 

The token is up 8.1% over the last week and 1.5% over the last month.

Momentum Builds Ahead of Resistance Test

Bitcoin is now within distance of its recent high near $86,500, with traders eyeing a potential breakout that could set the stage for another test of the $88,000–$90,000 resistance range. The move comes as BTC dominance climbs to 64%, its highest level since January 2021, signaling strength relative to the broader crypto market.

The rally follows a new wave of policy-driven optimism. In Sweden, members of Parliament are pressing officials to adopt a national Bitcoin reserve strategy, inspired by similar moves in the U.S. MP Dennis Dioukarev formally asked Finance Minister Elisabeth Svantesson whether the government was considering holding Bitcoin alongside fiat and gold to strengthen national reserves. A second lawmaker, Rickard Nordin, made a similar push last week.

The conversation mirrors developments in Washington. In March, President Donald Trump signed an executive order to convert the country's confiscated Bitcoin—totaling 207,000 BTC, per BitcoinTreasuries—into a strategic reserve. The order mandates an audit of all federally held Bitcoin, signaling an institutional shift in the way sovereigns treat crypto assets.

The Czech Republic is also weighing similar measures. Czech National Bank Governor Aleš Michl recently suggested allocating up to $7 billion in Bitcoin to diversify the country's foreign reserves.

The moves are fueling a broader thesis that Bitcoin may become a strategic sovereign asset, with implications for long-term valuation and volatility.

Options Market Aligns With Bullish Outlook

Derivatives data further supports the bullish setup. Benzinga previously reported that the most popular Bitcoin options contract on Deribit is now the $100,000 call, with notional open interest nearing $1.2 billion. Skews across the 30 though 90-day windows have flipped positive, showing increased demand for upside exposure and a clear reversal from last week's panic.

The trend suggests institutional traders are again positioning for higher prices, potentially anticipating a combination of macroeconomic easing and favorable regulatory moves.

Geopolitical and Macro Tailwinds Persist

While short-term catalysts remain tied to news from the White House—including pending decisions on semiconductor tariffs and leadership changes at the Federal Reserve—macro sentiment has improved. Treasury Secretary Scott Bessent said Monday that the U.S. bond market remains stable despite concerns of foreign dumping, and reaffirmed the dollar's status as the world's reserve currency.

Meanwhile, falling Treasury yields and record gold prices continue to support appetite for alternative assets. The DXY index has dropped below 100, weakening the dollar and potentially reinforcing the bullish environment for Bitcoin.

Key Levels to Watch

Bitcoin must hold support at $85,000 to preserve its near-term momentum. A confirmed break above $86,500 could open the door to a run toward $88,000 and eventually $91,000—the all-time high reached earlier this year.

On the downside, support levels remain near $81,800 and $79,000, with broader bullish structure intact as long as those zones hold.

Between sovereign adoption chatter, institutional inflows, and strengthening technicals, Bitcoin continues to show signs of resilience and potential leadership in the next phase of the crypto market cycle. While volatility remains a constant risk, the narrative surrounding Bitcoin's strategic role—both for investors and for nations—appears to be gaining traction.