The Czech National Bank (ČNB) is considering investing up to 5% of its reserves in Bitcoin, potentially acquiring $7.3 billion in BTC as part of its diversification strategy.
ČNB Could Become the First European Central Bank to Hold Bitcoin Reserves
The Czech National Bank may become the first central bank in Europe to add Bitcoin to its foreign exchange reserves. ČNB Governor Aleš Michl is set to present his Bitcoin acquisition plan to the Banking Council on January 30.
If the proposal is approved, ČNB could allocate up to 5% of its foreign reserves to Bitcoin, translating into purchases worth $7.3 billion. The central bank’s total reserves exceed $146 billion, according to André Dragosch, Head of Research at Bitwise.
Dragosch emphasized the significance of this move in a post on X, stating:
"For context: these BTC purchases alone would account for approximately 5.3 months of newly mined Bitcoin."
ČNB Previously Dismissed Bitcoin Investment in January
As recently as January 7, ČNB denied any plans to invest in Bitcoin. According to Janis Aliapulios, a Board Advisor, the bank was not considering cryptocurrency investments and instead planned to increase its gold holdings to 5% of total reserves by 2028.
Now, however, the situation has taken a dramatic turn, with Bitcoin emerging as a potential reserve asset.
Trump’s Crypto Regulations Could Fuel Bitcoin’s Growth
The growing interest of central banks in Bitcoin coincides with Trump’s administration signaling a more favorable regulatory stance on cryptocurrencies. U.S. President Donald Trump has boosted confidence in the crypto sector, with expectations of clearer regulations ahead.
ČNB Governor Aleš Michl commented on the impact of U.S. policies on Bitcoin, stating:
"Trump might create a temporary bubble around Bitcoin, but the long-term growth trend would continue even without him. More people now see Bitcoin as an alternative investment."
Despite the optimistic outlook for Bitcoin in 2025, some risks remain, particularly related to the U.S. national debt, which recently hit $36 trillion. This could trigger a short-term correction to $70,000 BTC before the next bullish cycle begins.
Analysts' Bitcoin Predictions for 2025
According to Raoul Pal, founder of Global Macro Investor, Bitcoin could surge past $110,000 in January 2025, before experiencing a temporary correction due to short-term liquidity constraints.
Nonetheless, analysts remain bullish on Bitcoin’s long-term prospects, with price forecasts for 2025 ranging between $160,000 and $180,000.
💡 If ČNB proceeds with Bitcoin investments, it could have a massive impact not only on the Czech Republic but also on the European financial system as a whole. 🚀
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