Prominent blockchain expert and co-founder and managing partner of LIAN Group, Fiorenzo Manganiello, expects European central banks to start accumulating Bitcoin this year. This prediction comes in light of the recent implementation of the Markets in Crypto-Assets Regulation (MiCA) in the European Union.
The first MiCA licenses are currently being granted to cryptocurrency exchanges following the regulatory transition phase, which began in December 2024. Manganiello believes that with the assurances of strict MiCA rules, traditional investors will be more inclined to participate in the market. This could reduce market volatility cycles and perhaps prompt European central banks to create a Bitcoin reserve in 2025.
Bitcoin’s strength continues to grow, recently hitting a new record high of $109,000. While Trump’s re-election has added to the market’s enthusiasm, Manganiello stated that the Bitcoin market volatility will soon end. He expects a wave of European financial institutions to enter the market soon.
The new MiCA rules are expected to encourage previously hesitant institutional investors to increase their exposure to Bitcoin. Despite the EU’s traditionally cautious stance towards digital assets, the introduction of these strong regulations will likely boost investor confidence in cryptocurrencies.
As a result, Manganiello expects European central banks to start building their Bitcoin reserves in 2025. As Bitcoin stabilizes, becomes more liquid, and becomes more profitable, it is only a matter of time before European central banks start diversifying their portfolios with cryptocurrency to hedge against traditional market volatility.
“With the new EU MiCA regulation reassuring crypto skeptics, I am sure we will see not only institutional investors but even central banks moving towards Bitcoin. These rules will give traditional investors and financial institutions the confidence they need to enter the market,” Manganiello said.
Bitcoin has become too strong to ignore, and I think this year we will see some European central banks start building up their reserves of the currency to diversify their portfolios and bolster their defenses against traditional market volatility.”
