YEREVAN (CoinChapter.com) — The Czech National Bank (CNB) may become the first European central bank to invest in Bitcoin as part of its reserve strategy. Governor Aleš Michl will present the Bitcoin reserve proposal during a board meeting on Jan. 30, according to the Financial Times. If approved, CNB could allocate 5% of its reserves, totaling $7.3 billion, to Bitcoin investment.
Czech National Bank’s Bitcoin Investment Could Affect Market Supply
The Czech National Bank’s Bitcoin investment would account for approximately 5.3 months of the newly mined Bitcoin supply, according to André Dragosch, head of research at Bitwise. In a Jan. 29 post on X, Dragosch highlighted the scale of the purchase compared to the overall market supply.
Czech Reserve Breakdown 2024. Source: André DragoschAleš Michl has previously mentioned Bitcoin as a potential reserve asset. He said he was considering adding “a few Bitcoin” to the Czech National Bank’s reserves as part of a diversification strategy.
Aleš Michl on 2025 Inflation Stability. Source: Cnb.czCzech National Bank’s Changing Position on Bitcoin
On Jan. 7, CNB adviser Janis Aliapulios stated that the Czech National Bank was not considering a Bitcoin investment at that time. Instead, CNB planned to increase its gold holdings to 5% of total assets by 2028. However, recent statements from Aleš Michl indicate that Bitcoin investment is now under serious review.
In a Jan. 29 X post, Michl wrote that while Bitcoin is “worth considering” as part of a large portfolio, the board will need to conduct a detailed analysis before making a final decision.
Aleš Michl on Bitcoin Reserves. Source: Aleš MichlBitcoin Reserve Proposal and Cryptocurrency Regulation
The potential $7.3 billion Bitcoin investment comes as cryptocurrency regulations continue to evolve. Aleš Michl mentioned that U.S. President Donald Trump’s approach to cryptocurrency regulation could impact the market.
“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, because it’s an alternative [investment] for more people,”
Michl told the FT.
Bitcoin Price Trends and Market Liquidity Concerns
Some analysts have noted potential Bitcoin liquidity issues in the near future. Raoul Pal, CEO of Global Macro Investor, predicted a Bitcoin price peak above $110,000 in January, followed by a correction. He stated that Bitcoin could briefly fall to $70,000 before another market surge.
GMI Liquidity Index and Bitcoin Chart. Source: Raoul Pal, Global Macro InvestorThe $36 trillion U.S. debt ceiling is another factor affecting Bitcoin liquidity. Some believe it may influence Bitcoin price movements before a long-term trend emerges.
The Czech National Bank’s Bitcoin investment proposal will be discussed during the Jan. 30 board meeting. If approved, CNB would be the first European central bank to add Bitcoin reserves.
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