European Central Banks Poised to Accumulate Bitcoin in 2025 Amid MiCA Regulation

European central banks may start accumulating Bitcoin this year, according to blockchain expert Fiorenzo Manganiello, co-founder of LIAN Group. His prediction follows the European Union's implementation of the Markets in Crypto-Assets (MiCA) regulation, which enhances security and compliance in the cryptocurrency market.

With the first MiCA licenses issued to crypto exchanges after the regulation’s transition phase in December 2024, institutional investors are expected to increase their exposure to Bitcoin. Manganiello believes these stringent rules will provide confidence for traditional investors, reducing market volatility and encouraging financial institutions to enter the crypto space.

Bitcoin recently surged to a record $109,000, fueled by renewed market enthusiasm, including optimism over Trump’s re-election. Manganiello predicts Bitcoin’s volatility will subside as European financial institutions begin accumulating Bitcoin reserves. He expects central banks to follow suit in 2025, viewing Bitcoin as a hedge against traditional market fluctuations.

Despite the EU’s historically cautious stance on digital assets, MiCA’s robust framework is set to drive mainstream adoption. Manganiello stated, “MiCA reassures skeptics, providing the security and structure needed for institutional investors—and even central banks—to engage with Bitcoin.”

As Bitcoin gains stability, liquidity, and profitability, its appeal as a reserve asset strengthens. With increased institutional adoption and regulatory clarity, European central banks may soon integrate Bitcoin into their holdings, marking a significant milestone in the financial sector’s shift toward digital assets.