European Central Banks Secretly Accumulating Bitcoin: Could These Moves Propel It to $843,000?

• European central banks are boosting Bitcoin holdings, signaling a bullish market outlook.
• Norway and Switzerland central banks invest heavily in MicroStrategy for Bitcoin.
• Bitcoin could reach $843,000, with central banks’ interest, may surpass gold

European central banks are quietly making significant investments in Bitcoin , a move that could reshape the cryptocurrency landscape. As noted by Discover Crypto, an analytic firm, in a YouTube video , central banks in Norway and Switzerland are strategically adding Bitcoin to their portfolios. 

Norway’s central bank holds 1.1 million shares of MicroStrategy, while the Swiss National Bank holds up to 466,000 shares. This is not just a minor investment; it underscores a broader shift in how these financial institutions view digital assets.

These central banks have larger economies than initially assumed. For instance, Norway ranks as the 11th largest economy in Europe. This substantial economic power makes their investment choices particularly noteworthy. 

Major banks are escalating their Bitcoin holdings, indicating growing institutional confidence in the cryptocurrency. This trend is being interpreted as a positive indicator for Bitcoin’s future performance. Analysts suggest that the steady increase in Bitcoin holdings by these central banks indicates a positive outlook for the cryptocurrency. 

Furthermore, Discover Crypto predicts that Bitcoin may soon reach unprecedented highs, potentially surpassing its previous records. According to projections, Bitcoin price could hit $843,000, aligning with the market capitalization of gold. This scenario envisions Bitcoin as a major asset class for central banks, potentially replacing gold.

The strategy employed by these banks also highlights an interesting trend. Due to regulations restricting direct investments in volatile assets, central banks have turned to MicroStrategy as an indirect means of acquiring Bitcoin. 

As highlighted by ecoinometrics, MicroStrategy has effectively transformed into a Bitcoin fund, offering a pathway for central banks to invest in Bitcoin without breaching regulatory constraints.

This approach may be challenging for other public companies to replicate. The dramatic shift required to emulate MicroStrategy’s model could be too risky for most. However, this doesn’t negate the potential value of Bitcoin for long-term treasury management. Central banks’ actions suggest that Bitcoin could be an invaluable tool for managing reserves in the future.

BTC/USD 1-day price chart, Source: Trading view
Bitcoin’s market performance shows some volatility. As at press time, the price stands at $58,185.09 , experiencing a 4.41% decline over the past 24 hours. The one-day RSI is at 43.15, indicating that Bitcoin is neither oversold or overbought. Additionally, the MACD is trading below the signal line, which may suggest further short-term downward momentum.