Connecticut Bans Government Crypto Investments as Bitcoin Tests Key Range Ahead of CPI Data

By Pune Media On Jun 11, 2025

TLDR:

Connecticut prohibits state and local governments from holding or accepting crypto.
Bitcoin holds above $109K after retesting key range, signaling bullish continuation.
Traders await CPI data, with inflation surprises expected to spark major volatility.
Crypto policy divides deepen in U.S. as states like Texas and Connecticut take opposite paths.

Connecticut has approved legislation banning government investment in Bitcoin and other cryptocurrencies, triggering debate across the crypto sector.

The new law, set to take effect in October 2025, blocks state and local authorities from buying, holding, or accepting digital assets. This move places Connecticut among the strictest states on crypto regulation.

Meanwhile, Bitcoin’s price has climbed above a key resistance range, with traders watching for a bullish continuation. Market sentiment remains cautious, however, ahead of today’s Consumer Price Index (CPI) release, expected to affect price momentum.

New Connecticut Law Sets Firm Limits on Crypto

Analyst Crypto Patel noted that House Bill 7082 has officially passed in Connecticut, marking a sharp departure from crypto-friendly states like Florida and Texas.

BREAKING: The state of Connecticut has passed a new law that bans government investment in #Bitcoin and other virtual currencies.

State funds can no longer buy or hold crypto
Stricter rules now apply to crypto money services
This is one of the toughest crypto laws… pic.twitter.com/L90UMmh8qC

— Crypto Patel (@CryptoPatel) June 11, 2025

The bill prohibits government entities from holding virtual currencies, citing potential financial instability due to price volatility. Tighter oversight will also apply to money services that deal with digital assets.

Supporters of the law argue it protects taxpayers from unpredictable losses. Lawmakers behind the bill pointed to concerns about the systemic risks of crypto exposure within public funds.

By contrast, critics argue the policy blocks innovation and ignores the economic value digital assets could offer long term.

Bitcoin Price Holds Above Key Range Before CPI

Bitcoin recently closed above a major resistance range between $90,000 and $108,000, according to market analyst Daan Crypto Trades.

A local retest has confirmed the range breakout, supporting the case for continued upward momentum. The analyst noted that price closes, not wicks, are essential to sustain the bullish trend.

Bitcoin price on CoinGecko

At press time, CoinGecko data shows Bitcoin trading at $109,330, reflecting a slight 0.13% dip in 24 hours but a 3.35% gain over the past week. Traders now focus on maintaining this level ahead of macroeconomic updates that could shake market stability.

CPI Data Looms Large for Crypto Traders

Crypto traders await today’s CPI data, expected at 8:30 AM ET, which could influence Bitcoin and broader markets. Analyst Ash Crypto said the forecasted 2.5% year-over-year rise, if exceeded, may trigger sharp market pullbacks.

A reading above 2.5% would mark the biggest monthly jump in 2025, raising pressure on the Federal Reserve.

If inflation remains flat or falls below projections, markets could see a rally, especially in crypto and equities. Traders are preparing for increased volatility, with next week’s Federal Open Market Committee (FOMC) meeting adding to uncertainty.

REMINDER

TODAY’S CPI DATA IS GOING TO BE VERY CRUCIAL AND ITS COMING AT 8:30 AM ET.

THE MARKET CONSENSUS IS EXPECTING A 2.5% YoY INCREASE, WHILE LAST MONTH’S CPI DATA WAS 2.3%.

IF CPI COMES HIGHER THAN 2.3%, IT’LL MARK THE FIRST CPI INCREASE SINCE FEBRUARY.

THE FOMC… pic.twitter.com/XNqvtEyPCo

— Ash Crypto (@Ashcryptoreal) June 11, 2025

Connecticut’s decision signals growing divergence in U.S. state-level crypto policy.

While Texas and Florida expand support through regulatory sandboxes and pro-blockchain programs, Connecticut adopts a more cautious stance. Analysts see this split as a defining factor in future crypto development across the country.

The state-level ban may also spark legal and business debates about the role of digital assets in public finance. As Bitcoin stabilizes above key levels and macro factors intensify, investors watch closely for signals that could shape crypto’s next major move.

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