The Czech National Bank (CNB) is considering Bitcoin as part of its reserve diversification strategy, while China has reportedly sold a significant portion of its holdings. The CNB board is set to review the proposal at a meeting on January 30, according to the Financial Times. Meanwhile, China is believed to have sold nearly $20 billion worth of Bitcoin linked to the PlusToken Ponzi scheme.
The BTCUSD H1 chart showed a bullish move after finding support but faced rejection at an intraday resistance level. A breakout above the resistance could lead to a bullish day.
Czech Central Bank Reviews Bitcoin Reserves Plan
If approved, CNB’s Bitcoin investment could exceed $7.3 billion. This estimate is based on the bank’s total reserves of more than $146 billion, according to André Dragosch, head of research at Bitwise. He noted that such a purchase would represent approximately 5.3 months of newly mined Bitcoin supply.
Czech National Bank May Allocate Up to 5% of Reserves to Bitcoin as Part of Diversification Strategy, Potentially Acquiring BTC Worth Around $7.3 Billion---------------????Coin:BTC ( $BTC ) $102,719.10---------------NFA. pic.twitter.com/lnX44WiIyH
— COINOTAG NEWS (@coinotagen) January 29, 2025
Earlier in January, CNB board adviser Janis Aliapulios told Cointelegraph that the bank was not considering Bitcoin investments at the time. Instead, the bank planned to increase its gold holdings to 5% of total assets by 2028. However, Governor Aleš Michl has since indicated that Bitcoin is now under review as a potential reserve asset, though further analysis is required before a decision is made.
BTCUSD Seeks Support After Resistance Rejection
BTCUSD found support at 100250 and formed a bullish candle on the H1 chart. The price then moved upward with strong momentum. However, the 103000 level has been acting as resistance. As of now, after a rejection, the price is looking for intraday support. A bullish breakout above the resistance could attract more buyers, pushing the price higher.
DeepSeek AI has outlined three potential scenarios for Bitcoin in 2025, as reported by Finance Magnates. In the base case, Bitcoin could trade between $100,000 and $150,000. A bullish "hyperbitcoinization" phase may push the price to $350,000, while a black swan scenario suggests a peak of $500,000. These projections reflect expectations of increased institutional adoption and blockchain's broader acceptance in finance.
The Chinese government has likely sold its nearly $20 billion worth of Bitcoin holdings.China is making its position clear as it stockpiles gold. The Western world is asleep to this fact pic.twitter.com/FCPxVL0EY2
— Dedy Sudarwanto (@dedygober) January 28, 2025
China Liquidates Bitcoin, BlackRock Increases Holdings
China’s reported Bitcoin sales stem from assets seized in 2019 from the PlusToken scheme, which defrauded investors of billions. CryptoQuant CEO Ki Young Ju suggested that around 194,000 BTC was gradually liquidated through exchanges such as Huobi. While Chinese authorities previously stated that the seized funds were transferred to the national treasury, they did not confirm whether they were sold or retained.
BlackRock, the world’s largest asset manager, has been accumulating Bitcoin, purchasing the asset for five consecutive trading days. The firm’s largest acquisition of the year occurred on January 21, when it bought $600 million worth of Bitcoin, according to Arkham Intelligence. Institutional demand has helped offset selling pressure from China’s reported liquidations.
This article was written by Tareq Sikder at www.financemagnates.com.
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