Bitcoin Surges Past $100K, Czech Bank Eyes 5% Crypto Reserve

Bitcoin (BTC) Price: Maintains $100,000 Support Level as Tech Stocks Face Pressure

Bitcoin (BTC) has maintained its price above the $100,000 level despite recent pressure in the tech stock market. This resilience suggests that BTC may be decoupling from traditional equities and maintaining its status as a safe-haven asset.

Analysts and investors are closely watching the upcoming FOMC meeting, which could potentially impact Bitcoin's price trajectory. A surprise interest rate cut could act as a catalyst for BTC to break above $110,000, according to some market participants.

The Czech National Bank (CNB) is considering a groundbreaking move by investing 5% of its €140 billion ($146.13 billion) foreign reserves into Bitcoin. This would make the CNB the first major Western central bank to integrate cryptocurrency into its reserves, potentially reshaping how central banks perceive digital assets.

Bitcoin's market capitalisation has surged past $2 trillion, making it the world's seventh-largest asset. While the digital currency is often criticised for its volatility, institutional adoption has been rising, with companies like BlackRock now offering Bitcoin exchange-traded funds (ETFs). If the CNB follows through, it could set a precedent for other central banks to explore Bitcoin as a diversification tool.

Ales Michl, the governor of the CNB, has been vocal about modernising the bank's reserve management strategy. Traditionally, central banks rely on low-risk investments like US government bonds. However, Michl, with his background in investment, sees Bitcoin as a viable asset class capable of delivering high returns.

Bitcoin has gained significant traction in 2024, with year-to-date growth of nearly 144% and an all-time high of $110,000. While its price swings remain extreme, supporters argue that Bitcoin's long-term adoption is driving its value. Institutional interest is also growing, with major financial firms incorporating Bitcoin into their portfolios.

The CNB's decision to invest could further validate Bitcoin's role as a reserve asset. Diversification is key for central banks, and Bitcoin's independence from traditional financial systems makes it an attractive hedge. With inflationary pressures and global economic uncertainty, Michl's proposal