Bitcoin's European Central Bank Accumulation: A New Era?

Bitcoin's dominance has been a hot topic in the cryptocurrency world, with many speculating about its role in the upcoming altcoin season. According to a leading blockchain expert and co-founder of LIAN Group, Fiorenzo Manganiello, European central banks are expected to start accumulating Bitcoin this year, which could potentially lead to a reduction in volatile market cycles and prompt European central banks to create a Bitcoin reserve in 2025.

Bitcoin's strength continues to grow, recently hitting a new high of $109,000. While the re-election of Trump has added to the market's enthusiasm, Manganiello believes that Bitcoin's market volatility will soon end, and a surge of European financial institutions will enter the market. The new MiCA rules are expected to encourage previously hesitant institutional investors to increase their exposure to Bitcoin, boosting investor confidence in cryptocurrencies.

Meanwhile, Bitcoin's market dominance has reached an empirical high of 71%, leading some to believe that an altcoin season is on the horizon. According to Rekt Capital, Bitcoin needs to maintain a continuous market cap of 70% to begin the alt season. The recent inflation and price correction of major altcoins have played a critical role in Bitcoin's dominance, with the token's dominance reaching 64.3% this week.

The improvement of BTC price strength depends largely on the market prospects of altcoins going forward. To begin the new alt season, altcoins must gain another 16% using assets at the current level. The altcoins that could encounter deeper corrections are ETH, Solana, Polka Dot, Binance 2, TRON, etc. This is an ideal scenario for the alt season, as it would lead to a more balanced market and potentially a bearish downturn.

If current trends continue, there will soon be a change to the chronic BTC dominance, and the market will be able to see new higher peaks. As Bitcoin becomes more stable, liquid, and profitable, it is only a matter of time before European central banks start to diversify their holdings with the cryptocurrency to hedge against traditional market volatility.