California Passes Crypto-Friendly Law as Bitcoin Rebounds Above $28K But Faces Volatility Risks

California Governor signed 'BitLicense' bill that could benefit crypto businesses in the state and aid long-term industry growth.

Bitcoin price stood above $28,400, extending a two-day gain streak. Ether and BNB little changed, while Solana's SOL jumped 6%.

Fake reports of BlackRock's bitcoin spot ETF approval led to massive volatility on Monday, with bitcoin whipsawing between $30,000 and $27,900.

Short-term bitcoin holders account for only 19% of circulating supply, indicating strong "holding sentiment" per Bitfinex analysts.

Analysts flag risks of low spot trading volumes and increasing use of leverage among traders that could cause outsized liquidations.