The Czech National Bank may become the first in Europe to invest in Bitcoin, with a proposed $7.3 billion purchase that could tighten supply and push prices higher.
The Czech National Bank (CNB) may soon make history as the first European central bank to hold Bitcoin in its reserves. Governor Aleš Michl is set to propose an investment of up to 5% of the CNB’s $146 billion reserves into Bitcoin, which could amount to a staggering $7.3 billion, according to Financial Times. If approved at the board meeting on Jan. 30, this move would significantly diversify the country’s foreign exchange assets.
The potential purchase is no small matter. André Dragosch, head of research at Bitwise, highlighted in a Jan. 29 post on X that such an acquisition would be equivalent to about 5.3 months of newly mined Bitcoin. This could add serious buying pressure to an already scarce supply, potentially fueling Bitcoin’s price further.
Bitcoin’s momentum isn’t just about central bank adoption. The Trump administration’s stance on crypto regulation is injecting further optimism into the market. Michl told Financial Times, “Those [Trump] guys can now kind of create some bubble for Bitcoin, but I think the trend would be an increase without those guys as well.”
Despite short-term volatility, analysts remain bullish. Raoul Pal, CEO of Global Macro Investor, predicts Bitcoin will hit a “local top” above $110,000 in January before a correction. Looking further ahead, projections for 2025 range from $160,000 to $180,000, reinforcing Bitcoin’s role as a serious asset in global finance.
At the time of writing, Bitcoin is sitting at $102,561.16.