The Czech National Bank (CNB) is considering a bold move. They might invest up to 5% of their reserves in Bitcoin. This could mean buying around $7.3 billion worth of BTC. It’s part of their strategy to diversify foreign exchange reserves.

Governor Aleš Michl plans to present this Bitcoin acquisition idea at a board meeting on January 30. If the board approves it, the CNB would become the first central bank in Europe to invest in Bitcoin.

The CNB holds over $146 billion in total reserves. According to André Dragosch from Bitwise, this proposed investment is significant. He pointed out that these Bitcoin purchases would equal about 5.3 months of newly mined Bitcoin supply.

This news follows Michl's earlier comments about looking into Bitcoin as a potential reserve asset. He mentioned considering acquiring a few Bitcoin for diversification. However, as of January 7, the bank said it wasn’t actively pursuing a Bitcoin investment. Janis Aliapulios, an adviser to the board, noted plans to increase gold holdings to 5% of total assets by 2028.

On another note, optimism is rising among crypto investors. This comes after comments from US President Donald Trump regarding regulations for cryptocurrencies. Michl told the Financial Times that the Trump administration’s supportive stance could boost Bitcoin’s momentum. He said, “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.”

Looking ahead, Bitcoin’s prospects for 2025 seem bright. However, the recent $36 trillion US debt ceiling has raised concerns about liquidity. This could lead to a temporary dip to $70,000 before the market rallies again. Analyst Raoul Pal, founder of Global Macro Investor, indicated that Bitcoin might hit a “local top” above $110,000 in January. He also mentioned that a peak in liquidity could result in a deeper correction.

Despite these short-term fluctuations, analysts remain optimistic for the long term. Predictions for Bitcoin prices in 2025 range from $160,000 to over $180,000.